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Electrifying First As Gas-Fired Power Station Makes Comeback

Posted on: Thursday, 18 August 2005, 06:00 CDT

A GAS-FIRED power station that closed three years ago was returned to full service yesterday.

Powergen owner E.ON said it believed the revival of the Lincolnshire-based Killingholme station was the first time a gas- fired facility had been brought back into action after an extended period out of use.

The move is part of a drive to use lower-emission fuel, although E.ON has also been encouraged by a sharp recovery in the level of power prices.

In October, 2002, E.ON UK chief executive Dr Paul Golby blamed the closure of Killingholme on new electricity trading arrangements, which caused wholesale power prices to fall below the cost of production.

At the same time Powergen withdrew two oil-fired units at its Grain power station in Kent.

Forward energy prices at the time of the announcement ranged between pounds 13 and pounds 15 per megawatt hour, but are now pounds 55 per megawatt hour for use this winter.

While many oil-fired stations have been brought back into use, the more recent development of gas as a resource for power stations means it is less common for stations to be brought back online

Source: Daily Post; Liverpool

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