Letter from London: UK thermal generation economics in a spin
The country’s move away from market-based to subsidy-driven mechanisms is undermining both existing and new conventional generation
The June appointment of administrators for the UK’s Severn Power and Sutton Bridge combined-cycle gas turbine (CCGT) power plants owned by independent power producer Calon Energy was, unfortunately, no great surprise. Even when Calon bought Sutton Bridge from France’s EdF seven years ago, its commercial assumptions were optimistic. Calon plants may well have been negatively impacted by 2020’s UK power demand reduction due to the Covid-19 pandemic. It certainly would not have helped. Odds against But the brutal truth is that the power market of the UK (or, more accurately, that of GB, as Northern Ireland sits within the All-Island Energy Market) has never justified optimism for conventional g

Also in this section
29 July 2025
The EU’s Russia sanctions could have far-reaching implications for India’s Vadinar-based refinery
29 July 2025
There is a good strategic case for China to sign a deal for gas supplies via the proposed Power of Siberia 2 pipeline, but Beijing’s concerns over over-dependency on a single supplier and desire to drive down the price make it relatively unlikely that a contract will be finalised this year.
29 July 2025
EU industry and politicians are pushing back against the bloc’s green agenda. Meanwhile, Brussels’ transatlantic trade deal with Washington could consolidate US energy dominance.
25 July 2025
KRG, Iraq’s central government and Turkey are all working to get exports flowing from the key port, but complications remain