UK Subsidies for Fossil-Fuel Power Plants Swell to Record

  • UK capacity auction cleared at £65 per kilowatt per year
  • Auction ensures the UK has back-up power four years ahead
A Drax power station near Selby, UK.Photographer: Ian Forsyth/Bloomberg
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The UK will continue to subsidize fossil-fueled power plants into the second half of this decade with operators paid a record fee to stay open.

The capacity auction, that ensures Britain has sufficient back-up power, cleared at an all-time high of £65 per kilowatt per year for 2027-28. Around 67% of the 43.4 gigawatts of awarded capacity went to gas plants, highlighting the challenge to find a clean replacement.