As an efficient way to proceed with the phase-out plan, it has decided it will set up stricter emissions intensity limits to coal generating units, to offer coal operators flexibility in case they are interested in investing in Carbon Capture and Storage (CCS) or similar technologies to reduce emissions levels to acceptable levels - that is 450g of carbon per kilowatt-hour (kWh).
The prime minister announced in September previous year that the government would proceed with regulating the closure of coal power generation units after already cutting emissions by over 40% since 1990.
As part of its efforts to meet the country's climate targets, Britain in 2015 announced it would end "unabated" coal-fired power generation by 2025.
The department for business, energy and industrial strategy (Beis) has published its intentions for United Kingdom coal power generation following a consultation.
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"The Government has kept to its commitment to phase out unabated coal generation by 2025, but we aren't convinced that this alone merits its claims to global leadership". The government already estimates that all these power plants are unprofitable, not only due to carbon taxes but also due to low gas prices. "Not only are other countries imposing more ambitious sunset dates, we are concerned that the door is left wide open for investments in new, long-term gas capacity, locking us into another generation of fossil fuel power", he said. These closures will be supported by the relatively poor economics for coal generation and the effects of carbon pricing.
Ministers said that they would implement limits on the amount of carbon dioxide that coal plants can emit from October 1, 2025.
However, the department said it will introduce legislation that enables the secretary of state to allow coal power stations to generate in emergencies, for up to 90 days.
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