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The government has said it will take steps to limit the access of coal-fired power to long-term supply contracts through its capacity market auctions.
The department of energy and climate change (DECC) said on Friday that only new power plants would be considered eligible for the 15-year contracts on offer, thereby excluding coal-fired power plants.
“We are going to amend the capacity market rules to clarify without any doubt that only new projects can access the 15 year maximum term,” DECC said in a statement.
The government’s pledge comes in reaction to criticism from green groups that the capacity market could allow coal plants to continue operating well into the 2020s, derailing decarbonisation efforts.
Greenpeace UK energy analyst Jimmy Aldrige said: “The idea that super-polluting old coal plants should get billions in subsidies for the next 15 years is so indefensible that the government has little choice but to close this loophole.”
But capacity market contracts of up to three years will still be available to coal-fired power plants, meaning coal-fired generators could still receive “subsidies worth hundreds of millions, putting our climate ambition at risk,” Aldridge added.
DECC said it would consult on the proposed change shortly.
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