18th Nov 2015 12:28
LONDON (Alliance News) - The UK government on Wednesday outlined plans to close all coal-fired power stations in the country by 2025 and shift its focus to gas, sending shares in Drax Group PLC lower.
Amber Rudd, the Energy and Climate Change Secretary, confirmed earlier reports that the government will open a consultation on closing all remaining coal-fired power stations in the UK by 2025, a move she said would make the UK one of the first developed countries to take coal out of the power generation system.
The government will aim to replace the coal-fired stations with gas-fired alternatives, though Rudd said the changes would only go ahead if consultation found the switch could be carried out within the timescale tabled.
Rudd, speaking at the Institution of Civil Engineers, also reiterated the government's support for building nuclear power stations in the UK and committed to supporting the offshore wind industry, provided the cost of generating power via this method is brought down.
The news sent shares in Drax, which operates power plants in the UK, including three coal-fired units, lower on Wednesday, down 4.6% to 216.10 pence to be the worst performer in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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