Transmission Capacity at Pete

RNS Number : 8791I

Scottish & Southern Energy PLC

22 March 2010

 



SCOTTISH AND SOUTHERN ENERGY PLC

TRANSMISSION ENTRY CAPACITY AT PETERHEAD POWER STATION

SSE (Scottish and Southern Energy plc) has released 344MW of electricity Transmission Entry Capacity (TEC) rights relating to its power station at Peterhead, Aberdeenshire.  This transmission capacity will now be available for other electricity generators in the north east of Scotland.

The maximum level of transmission access which the power station now has is 1,180MW.  Its installed capacity is 1,840MW, following the decommissioning in 2009 of two open cycle gas turbines and the removal from service of one boiler to improve the two-shifting capacity and operational flexibility of the station's Block One. 

Peterhead's capacity now comprises: Block One, which was commissioned in 2000, with 1,180MW of capacity and a thermal efficiency of around 56%; and Unit Two, with 660MW of capacity and a thermal efficiency of around 35%.  The retention of Unit Two allows Peterhead to provide replacement generation capacity when Block One is undergoing outages. 

SSE has previously indicated that the current unfavourable electricity transmission charging arrangements are an important factor in determining development plans for Peterhead.  A recent review concluded that, under the current arrangements, it was not economically viable to maintain the access capacity above the 1,180MW required for Block One. 

While the future of Block One is secure, it also means that the long-term future of Unit Two will now need to be reviewed.  This review is expected to take some time to complete, but if the current transmission charging arrangements are not fundamentally changed, it is likely that it will result in the closure of Unit Two.

If the closure of Unit Two is the conclusion of the review, there would be a reduction of between 50 and 70 in the number of the people employed at the station.  A full consultation process for those affected by this review will take place during the coming months.  It will include identifying opportunities for retraining and redeployment elsewhere in SSE. The company is aiming to achieve any reductions that may arise by voluntary means.

Ian Marchant, Chief Executive of SSE, said:

'Peterhead power station has evolved considerably since it started operating in 1980.  Thirty years on, it is an efficient, flexible asset which will continue to play a crucial part in maintaining secure supplies of electricity and in contributing to the balanced nature of SSE's generation portfolio. 

'Releasing transmission entry capacity in this way is a pragmatic step, reflecting how the station has evolved, but it nevertheless has been influenced by the shortcomings in the current transmission charging arrangements. 

'The released capacity will, however, provide opportunities for new generation to be connected in the north east of Scotland to help meet the country's electricity needs.'

 

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