Coal the UK's main fuel for power generation in Q1 05: DTI

London (Platts)--30Jun2005

Coal was the main fuel used for power generation in the UK in Q1 05, according
to Department of Trade and Industry statistics. 

Coal produced 38.7% of UK electricity in Q1 05, against 34.6% for gas, 19.4%
for nuclear, 5.9% for oil, renewables and other and 1.3% for imports. That
suggests that emissions prices had not then risen high enough to drive a
switch from coal to gas. Gas-fired plants can reduce emissions by about 50%
per unit of power produced compared to coal, according to the government's
recent carbon abatement technology strategy. 

Generally spot UK gas prices are higher in winter quarters than in
summer--because of local heating demand. Coal prices are likely to be more
stable across the year, because coal, unlike gas, is a global market. So in
summer quarters, gas may look more competitive against coal than it does in
winter. In Q1 04 coal produced 37.0% of UK electricity and gas 36.6%, gas only
just behind. But across 2004 as a whole, gas produced 41% of electricity and
coal only 33% suggesting gas was the main fuel used in summer quarters.

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