UK Turns to Coal Reserve to Keep Homes Warm During Cold Snap

The UK's grid operator has asked three coal-fired power units to be ready to generate electricity on Monday, as the country experiences a cold snap. This will help to boost electricity supplies during this time.

This is the first time this winter that National Grid Plc has needed to call on the reserve. The units are warming up and will be ready to generate electricity early Monday if needed. Demand is expected to surge during a spell of freezing weather in the UK, even as wind speeds drop, curbing supply.

As a prudent system operator, National Grid's Electricity System Operator has the tools it needs to maintain normal operations in the event of a contingency. The public should continue to use energy as normal.

The UK will phase out coal next year as part of its efforts to reduce emissions from the power sector. However, the government has asked coal-fired power producers to keep units available this winter in case of a shortage of natural gas. Using coal means less gas is needed to produce power. The grid operator has also been testing a tool that asks households to cut demand.

Freezing fog is forecast to grip Britain overnight into Monday, sending temperatures tumbling. The cold weather is set to last this week, according to Bloomberg's weather model. Wind generation will be low through Tuesday, so residents are advised to take precautions against the cold.

Western Europe is in for a cold snap this weekend, with snow and ice expected in many areas. Travelers should take caution and be prepared for winter weather conditions.

Grid data shows that demand is expected to peak at 42.2 gigawatts at 5 p.m. on Monday, up from 40.2 gigawatts on Sunday. Power for tomorrow rose to £187.67 a megawatt-hour, the highest since Dec. 21, on the N2EX exchange. The contract for 5-6 p.m. jumped to £260.40 a megawatt-hour on Epex Spot SE.

Britain is a major market for offshore wind power, and is particularly vulnerable to fluctuations in generation due to its reliance on expensive gas for backup. Prices have eased recently after a period of mild weather allowed Europe to keep more gas in storage than expected. However, UK futures are still more than double the usual levels for this time of year, according to ICE Endex data.

Drax Plc's units 5 and 6, as well as a unit at Electricite de France SA's West Burton, have been asked to get ready. These are two of the three stations that negotiated a winter contingency contract with National Grid for this winter, following a request from the government.