Power station wins £15m National Grid deal

Peterhead power station in Aberdeenshire has won a major contract to provide voltage support services to National Grid.

Voltage control is the method National Grid uses to make sure the electricity system stays within statutory limits.  The £15 million contract will run from April 2016 to September 2017.

A DECC spokesperson said: “The awarded contract is good news for Peterhead, a plant that is developing CCS technology, which will help towards our carbon emission objectives. This will also help maintain high levels of electricity security for Scotland.”

Jim Smith, SSE’s MD of energy portfolio management, said: “SSE has continually invested in the site since it opened in 1980 and we’re pleased Peterhead will continue to play an important role in ensuring National Grid can provide system stability and resilience going forward.”

However, the decision has cast a cloud over fellow bidder ScottishPower’s coal-fired Longannet plant. Neil Clitheroe, CEO ScottishPower retail and generation, said: “We are extremely disappointed with National Grid’s decision as ScottishPower submitted a competitive bid that reflected our commitment to protecting the immediate future of Longannet Power Station. As we have said previously, today’s decision by National Grid means that, in all likelihood, we will be forced to announce the closure of Longannet by March 2016.”