Gas and oil

We own 4,470MW of gas- and oil-fired electricity generation capacity, including a share of joint investments.

During 2011/12, our main wholly-owned gas-fired power stations (Keadby, Medway and Peterhead) achieved 94% of their maximum availability to generate electricity, excluding planned outages, compared with 88% availability in the previous year.  Availability increased by the return to service of Keadby in early May 2011 following the successful repair of a generator fault. 

We have joint venture interests in:

• Marchwood, the 840MW combined cycle gas turbine (CCGT) owned by Marchwood Power Ltd, a 50:50 joint venture between SSE and ESB International. During 2011/12, the plant achieved 94% of its maximum availability to operate during the year, compared with 93% the previous year; and
• Seabank, the 1,140 MW CCGT, owned by Seabank Power Limited, a 50:50 joint venture between SSE and Cheung Kong Infrastructure Holdings Limited. During 2011/12, the plant achieved 86% of its maximum availability to operate during the year, down from 96% the previous year. 
   

Developing flexibility in gas-fired generation

We will be performing a comprehensive programme of upgrade work to support more flexible operations at its Keadby and Medway power stations from 2012 onwards. To allow this work to be carried out, we suspended electricity generation at the stations at the end of March 2012.  The work that will be carried out follows a similar and successful programme undertaken at Peterhead power station in 2011.

Investment options for gas-fired power stations

Gas will play an increasingly important role in electricity generation.  It will provide flexible to support for the increasing amount of generation from on- and offshore wind farms.

Against this backdrop,  we will continue to develop a range of CCGT options:

• Our most advanced CCGT option, Abernedd in South Wales, secured its construction and operation consents in February 2011. We are pursuing a single CCGT unit of up to 470MW, which it considers the most economic option in the context of the site and the medium-term outlook for gas-fired generation. While an invitation to tender was issued in late 2011, an investment decision will not be taken until the second half of 2012 at the earliest and will depend, amongst other things, on the emerging shape of the electricity market following the UK government’s proposed electricity market reforms. This means that the power station, if built, will not be operational before 2015.
• We have a number of high potential CCGT development options located at existing generation sites including Keadby, Ferrybridge and Fiddler’s Ferry, plus Seabank, where we have recently acquired adjacent land for possible further development. These locations offer many attractive characteristics, including established grid and gas connections, availability of cooling water and land area. These and other potential sites across GB and Ireland mean SSE has a wide range of CCGT development options for independent or co-development.

Additional factors when considering the development and operation of CCGTs include fuel procurement, technical requirements for plant flexibility and future carbon abatement. In assessing these options, SSE is continuing its policy of rigorous analysis to ensure the right investment decisions are made and then effectively delivered. It is against this backdrop that:

• Barking Power Ltd, in which we have a 30% interest, is mothballing capacity at its 1,000 MW power station; and
• Derwent Cogeneration Limited, in which we have a 49.5% share, is planning to cease operation at its CHP plant during 2013. The plant provides heat to the nearby Celanese Acetate's Spondon factory in Derbyshire.