UK close to deal with EDF to keep coal-fired power station open

theguardian.com:

The UK government is close to striking a deal to keep a coal-fired power station in Nottinghamshire open longer than planned as ministers attempt to shore up Britain’s energy supplies.

UK officials are in negotiations with the French energy company EDF over plans to extend the operations of the West Burton A power station near Retford.

The plant had been due to shut by October this year but could now run until March.

If an arrangement is struck, the government would have a standby agreement whereby backup power would be available for about 1.5m homes.

A deal between EDF, the government, Great Britain’s energy regulator, Ofgem, and National Grid’s Electricity Systems Operator (ESO) over how much the French company would be paid was set to be signed last week but is now likely to be finalised this week, the Financial Times reported. It is expected to cost tens of millions of pounds, which would be levied on household energy bills.

West Burton A began generating in 1966 and was originally slated for closure last year, before that was extended to this September.

A spokesperson for EDF said: “EDF is working hard to finalise an agreement with National Grid ESO to support the government’s request to keep West Burton A power station available over next winter. An update will provided at the appropriate time.”

The government is also in discussions with Drax about extending the life of its coal-powered unit in Yorkshire, due to shut in September. Uniper’s plant in Ratcliffe-on-Soar, Nottinghamshire, which was also expected to close in September, could have its life extended.

The business secretary, Kwasi Kwarteng, wrote to National Grid ESO late last month to ask the industry to find ways to produce “additional non-gas-fired capacity over