karlpejera: Port Talbot power plant put on hold - capacity of station likely to be halved

Miyerkules, Marso 9, 2011

Port Talbot power plant put on hold - capacity of station likely to be halved

POWER company bosses behind the second gas-fired power station set to be built in Port Talbot have put the multi-million pound project on hold.

Scottish and Southern Energy has confirmed it will not be deciding whether to invest in its Abernedd development at Baglan Energy Park until next year — and even if it does the capacity of the station will be halved.

The company says the market for gas-fired power stations has become increasingly difficult, and the delay will allow it to assess the likely impact of the Government's electricity market reform proposals.

Campaigners have welcomed the decision but say they would prefer the plans to be dropped altogether and for light industry to be developed on the Baglan site.

When the 870MW station was first announced it was said the project would create 1,000 construction jobs and 40 operating jobs, as well as generating around �4 million in community benefits.

The Government approved the project last month.

Now SSE has announced that, instead of a double-unit power station, it intended pursuing the development of a single unit only, with the capacity reduced to 450MW.

"An investment decision on the scaled-back Abernedd project will not be taken until next year at the earliest," said a spokesman.

"It will depend, amongst other things, on the emerging shape of the electricity market following the UK government's current consultation.

"This means that the power station, if built, will not be operational before late 2015."

The original operational date was 2013.

Generation and supply director Alistair Phillips- Davies added: "We have made it clear that all of our power stations have to be able to operate economically over the medium term.

"The market for smaller gas-fired generation has become increasingly difficult. The medium term outlook is also challenging, which is why we have decided to scale back the Abernedd development to one unit and to defer the project by at least two years compared with the original timetable.

"Amongst other things, this will allow us to assess the likely impact of electricity market reform as it emerges over the next year and to further analyse the economics of any investment before taking a decision to go ahead with a CCGT unit."

Eleanor Owen of Baglan Bay Pressure Group said she still had serious concerns about land contamination and argued that it should be fully decontaminated before work started on the station, no matter how small it ended up.

"Given the choice I would rather not to have it there at all," she added.

"I would rather have light industry, as that would not require deep piling, which would disturb the protected water beneath the site."

paul.lewis@swwmedia.co.uk