Scotland-headquartered utility SSE plc slashed its coal-fired power output by 77% in the second quarter compared to a year ago, while increasing its renewables and gas- and oil-based generation.
In a trading statement for its fiscal first quarter released on Thursday, SSE said it produced 0.41 TWh of coal-fired power due to “poor market conditions”, implying the company will require fewer EU carbon allowances to cover its generation.
It did not elaborate further, but the utility’s coal-based operations were likely hit by a near doubling of the UK’s carbon price floor in April, which currently stands at £18/tonne.
SSE said it increased its output from renewables sources by 35% to 2.2 TWh, and from oil and gas by 10.5% to 2.42 TWh.
The utility gave no information on its forward power sales or on its hedging rates.
By Mike Szabo – email@example.com