As the UK gears up for another challenging winter, the government is turning once again to gas-fired power stations to ensure the country’s lights stay on during peak demand. In a move that’s already drawing attention, several gas plants are set to receive substantial windfall payments as part of the country’s broader effort to guarantee electricity supply when renewable energy sources fall short. The payments are part of the capacity market scheme, which is designed to keep standby power sources ready to fill the gap when demand spikes and wind or solar energy can’t meet it.
The reliance on these fossil fuel power stations might raise eyebrows, especially amid the UK’s push toward cleaner energy. But officials argue that it’s a necessary step to prevent power shortages during cold, dark months when energy use climbs dramatically. Earlier this year, in January, this approach became clear when two gas plants, one located in Hertfordshire and the other in Flintshire, were paid nearly £18 million collectively to remain on standby and generate electricity during a critical three-hour window. At the time, demand was forecast to be particularly high, and the renewable supply simply couldn’t be guaranteed.
These sorts of payments aren’t new, but they are becoming more prominent as the UK’s energy transition accelerates. While renewables like wind and solar are making up an increasingly large share of the country’s electricity, their intermittency means that backup systems are still essential, particularly during the winter. Critics, however, say that continuing to reward gas operators with such generous sums undermines climate goals and reveals how unprepared the system still is for a fully green future.
Supporters of the scheme argue that it’s a small price to pay to avoid blackouts and that the capacity market is not about favouring fossil fuels, it’s about security. Until battery storage and grid infrastructure catch up with renewable expansion, quick-start power plants like gas stations are the fallback solution. Still, the debate is heating up as these payments grow in size and frequency.
For now, though, gas remains a necessary part of the UK’s energy safety net. As winter looms and the need for reliable electricity becomes more pressing, these payments, though costly, are viewed by many as a necessary trade-off to keep homes warm and the grid running smoothly.
