Nigel Adams: Why Drax sets example to UK power stations

WE often refer to the 'trilemma' when discussing the pros and cons of UK energy policy, but the widespread closure of our coal-fired power stations presents its own 'trilemma'.
Drax power station is at the heart of a biomass revolution.Drax power station is at the heart of a biomass revolution.
Drax power station is at the heart of a biomass revolution.

The first challenge is the clear impact the closures have on the communities in which the power stations are based.

Eggborough power station, which employs almost 300 people, was on the brink of closure earlier this year – it had announced a consultation on plans to close – until its new owner, the Czech group EPH, managed to secure a contract with the grid to provide extra capacity this winter. But it is just a year’s contract. It is a stay of execution, if you like. We cannot ignore the fact that a cloud still hangs over Eggborough’s future.

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By contrast, Ferrybridge power station, which is right on the border of my constituency, was not so lucky. It was forced to close earlier this year, to the detriment of the hundreds of workers based there. If that is added into the mix with the closure of Britain’s last deep coal mine at Kellingley colliery, which is also in my constituency, these are very challenging times.

As well as the socio-economic impact of the closures, we need to consider the consequences for the nation’s energy security, which is the second element of the coal trilemma. At least 2.5GW of coal closures have been announced in recent months, in addition to the 4.9GW announced last year. That power would otherwise be supplied to millions of homes throughout the country. By losing those units, we are diminishing the resilience of our grid and its ability to absorb unforeseen risks.

Our margin of capacity, particularly when it is cold in winter, is already worryingly low. We are also significantly reducing the number of power stations that can provide ancillary services, such as system balancing, frequency response and black start, which allows us to turn the lights back on in the event of grid paralysis or partial shutdown. In the absence of coal-fired power stations, how will we procure such essential, often under-appreciated, services in future?

Because of the technical nature of this subject, I find there is a lack of understanding of the comparative capabilities of different types of power generation. Intermittent renewables, along with nuclear, are technologically incapable of delivering the services I have described. The lack of nuance in consideration is leading us blindly to risk our energy security.

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The third element of the coal trilemma is cost. The Energy Minister (Andrea Leadsom) has rightly said on many occasions that securing electricity at the least cost to consumers is an absolute priority. If we are to pursue an orderly transition away from coal, as the Government intend, it is only right that we do so in the most affordable way possible.

We face three key challenges associated with coal coming off the grid: the socio-economic impact, the security of supply impact, and the cost of filling the gap. On the face of it, it seems a particularly daunting task, but I am pleased to say that it is not insurmountable. Nowhere is that more vividly illustrated than at Drax power station.

It is the largest power station in the UK and generates approximately eight per cent of all the UK’s electricity. Over recent years it has gone through an incredible transformation by converting and upgrading some of its generating units to use sustainably sourced compressed wood pellets instead of coal. In doing so, it has addressed the three core issues I mentioned earlier.

Switching from coal to biomass has helped Drax to protect and secure the 850 employees who are based at the power station. It has also created new employment opportunities across the biomass supply chain, which has attracted hundreds of millions of pounds of private investment.

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Thanks to the conversion it has already undertaken, Drax has become the UK’s single largest source of renewable electricity. Around 12 per cent of the UK’s renewable power came from Drax in 2014. Crucially, this power is not only renewable but flexible and dispatchable, like coal or gas. It is available as and when we need it.

Biomass is the cheapest and most affordable renewable technology available to us today.

Going from being western Europe’s largest coal-fired power station to being its biggest de-carbonisation project in less than three years has made Drax an incredible success story. The question is, then, how can we build on that success and, where possible, replicate it?

A sensible and practical solution would be to allow coal power stations to compete for Government support to convert to biomass.

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I urge Ministers to consider how further biomass conversions could also be facilitated in the near future. Biomass is simply the quickest and most cost-effective way to get coal off the grid. As a nation we should look to promote its deployment further through additional station conversions while we still have a window of opportunity to do so.

Nigel Adams is the Selby and Ainsty MP who spoke in a Parliamentary debate on energy. This is an edited version.

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