The electricity demands of homes and businesses in Britain will continue to be met in the winter of 2020/2021 thanks to a Capacity Market auction that has secured more than 52GW of electricity capacity, as well as low-carbon battery storage and two new power stations that are going to be built.
The two gas power stations will be located in Kings Llynn and Spalding, while the battery storage has won agreements for the first time ever in the market-wide auction. By buying electricity capacity four years ahead of time, the chances of unexpected price hikes for electricity is also reduced.
In fact, the auction cleared at a lower cost than was predicted by many, at £22.50 per kilowatt, which means that bill payers will be able to take advantage of a secure supply of energy at a fair cost.
“Technological innovation, as part of our low carbon future, will create jobs and opportunities across the UK. We are rebuilding an archaic energy system, bringing forward brand new gas power and innovative low-carbon capacity like battery storage to upgrade our energy mix. This is about more than just keeping the lights on. A modern, reliable, and flexible electricity system powers the economy and Britain’s future success,” Greg Clark, business and energy secretary, said.
These battery storage plants will also be given government subsidies to provide electricity when supplies are low. These facilities work by absorbing surplus power when too much is generated and then release it as and when it is needed.
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