UK Power Auction Pays Out Near-Record Fee in Win for Gas

  • Country still relies on fossil fuels despite renewables growth
  • Utilities RWE and SSE were among the auction’s main winners
A gas fired power station near Rochester, UK.Photographer: Chris Ratcliffe/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 near-record fee to stay open.

A capacity auction Tuesday cleared at £60 a kilowatt for 2028-29, close to the all-time high reached last year, according to system operator NESO. Most of the capacity was awarded to gas-fired stations.