Diesel farms are expected to win contracts in a capacity auction that gets underway today to avoid Massive Power loss due to lack of Grid contingency.
National Grid, launches auction is intended to secure 45 gigawatts of power for a period of four years.
Companies with existing power stations and those planning new generating plants will take part. For the first time the auction will also be open to the operators of interconnector cables that carry electricity between the UK and the continent.
The auction is designed to deliver the power at the lowest price.
But a new report suggests that instead of ensuring large gas plants are built, the capacity market has incentivised the growth of diesel generation, which is less clean than gas.
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