Diesel farms, associated with noise pollution and toxic emissions, are among the providers bidding for contracts to supply back-up electricity to the UK’s National Grid in Tuesday’s annual capacity market auction. The farms, which provide support during peak demand, can make £ 5m ($6.34m) per year and the auction process has encouraged financiers to establish companies for the primary purpose of obtaining National Grid payments. Diesel farms are not there to provide power on a routine basis, but to fire up at times of peak use or to help balance second-by-second changes in demand. A spokesman from EDF said that it was “committed to providing a reliable energy supply” but added that there were no plans to build any new coal-fired power stations. Regulator Ofgem and the Department of Business, Energy and Industrial Strategy have both proposed reducing payments to the industry.
Diesel farms, associated with noise pollution and toxic emissions, are among the providers bidding for contracts to supply back-up electricity to the UK’s National Grid in Tuesday’s annual capacity market auction. The farms, which provide support during peak demand, can make £ 5m ($6.34m) per year and the auction process has encouraged financiers to establish companies for the primary purpose of obtaining National Grid payments. A spokesman from EDF said that it was “committed to providing a reliable energy supply” but added that there were no plans to build any new coal-fired power stations. Regulator Ofgem and the Department of Business, Energy and Industrial Strategy have both proposed reducing payments to the industry.