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28 October 2004 - RWE's UK subsidiary Npower is to evaluate the building of a new 2000 MW gas fired power plant close to its mothballed oil fired plant at Pembroke in Wales.
Npower's new facility would be close to two proposed LNG gas terminals, which are being built to offset declining North Sea reserves. The government has forecast that Britain will need to import up to 40 per cent of its gas needs by 2010, rising to 80 per cent by 2020. Part of the increase in demand will come from power generators switching away from coal towards gas in order to reduce emissions of greenhouse gases.
Npower has applied to National Grid Transco to connect up to 2000 MW of new gas fired capacity at Pembroke to the national electricity network. Although no final decision has yet been made, Npower is expected to submit a planning application.
Few power stations on this scale have been proposed in the UK in recent years due to overcapacity and low wholesale power prices. The surge in oil and gas prices and more buoyant electricity price has prompted a rethink and the prospect of some mothballed plants being brought back. A number of proposals for new plants were dropped in the late 1990's and firmer prices may see some of these re-emerge.
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