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Diesel farms in line for power payout

Diesel farms could this week win contracts worth hundreds of millions of pounds as part of a Government scheme to keep the lights on.
The payments, which will add to our energy bills, are intended to ensure there is enough generating capacity on the power network. Critics say the capacity market has failed to deliver new gas plants to replace aging coal power stations. The government says its priority is reliable, affordable energy supplies. The diesel farms are expected to win contracts in a capacity auction that gets underway today, overseen by National Grid, the auction is intended to secure 45 gigawatts of power for a period of four years.

The Government says the capacity market is deliberately technology-neutral to buy the lowest priced capacity to deliver value for money for consumers, and estimates the capacity market will add around £14 to to a typical annual energy bill.

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