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7 Pages

The future of coal-fired power in the UK

The future of coal-fired power in the UK

Report summary

In this insight, we review the position of coal generation in the UK power market, where an anticipated squeeze on margins during 2015 could impact decisions on plant investment and continued operation in the longer term. To highlight the economics of UK coal generators, we apply a cost model to explore the effect of future carbon costs, fuel prices and capacity payments on the business case for continuing plant operations.

What's included?

This report includes 1 file(s)

  • The future of coal-fired power in the UK PDF - 682.19 KB 7 Pages, 1 Tables, 4 Figures


This Power Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues within the power industry, this report gives you an expert opinion and analysis to help inform your decision making.

Wood Mackenzie's detailed analysis and reliable market forecasts provide a strong reference, enabling a quick and concise description about the relationship between this event and its implications.

Underpinned by our extensive gas, coal and oil markets research, Wood Mackenzie's detailed analysis and reliable market forecasts provide a reliable foundation for investments and corporate planning. We help you understand key regulatory and economic drivers, and emerging industry tends in the power industry.

  • Summary
  • The UK capacity market and the IED
    • The impact of the IED
    • The capacity auction weighs in
  • Modelling Uncertainties for UK Coal Generation
    • Results
    • The impact of fuel and emissions costs

In this report there are 5 tables or charts, including:

  • Summary
  • The UK capacity market and the IED
  • Modelling Uncertainties for UK Coal Generation
    • Dark spread cases – UK coal plant economics
    • The future of coal-fired power in the UK: Table 1
    • NPV of coal assets under different spreads and capacity payments
    • Load factor economics for coal plants under different capacity payments
    • Coal plant cumulative cash flows under different carbon prices, fuel costs and wholesale margins
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