The U.K. government has given itself leeway for a policy U-turn over gas-fired power generation, following a ban imposed late in November 1997 on new schemes.
Following pressure from U.K. coal producers, John Battle, minister for science, energy, and industry, imposed a moratorium on approval of plans to build new gas-fired power stations.
Battle said the coal industry had complained to the European Commission that long-term take-or-pay gas contracts "may have forced generators to use gas in their power stations when they might have preferred to sell it to other gas customers."
In late December, Battle's boss, Margaret Beckett, President of the Board of Trade, said that government is prepared to consider "on their merits" any requests for exceptions to the ban, for gas-fired power schemes already proposed.
Relenting on ban
While Battle appeared happy to stifle combined heat-and-power (CHP) schemes in favor of coal, despite their greater efficiency, Beckett said, "In considering any requests for exceptions, the government will be mindful of the environmental and other benefits of CHP."
Beckett told Parliament, "A review is being undertaken of energy sources for power generation. Interested parties are invited to submit their representations in writing by Feb. 16, 1998.
"The review will look at medium and longer-term scenarios for the development of generating capacity and sources of fuel supply for generation and consider the implications of high levels of dependence on any particular fuel, source of supply, transport route, or technology.
"It will take as its starting point trends in energy sources for power generation, especially the growing dependence on gas, taking into account the energy policy objective of secure, diverse, and sustainable supplies of energy at competitive prices and, in particular, the role of coal.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
