LONDON–(BUSINESS WIRE)–#buildingacleanertomorrow–Terra Firma Energy (TFE), a UK owner and operator of flexible generation, today emphasised the critical role that fast-start, dispatchable capacity will play in keeping Britain’s electricity system secure and affordable as the country transitions to a predominantly low-carbon grid.
The UK is entering a period where the volume of always-available (“baseload”) generation is structurally declining, while electricity demand is expected to rise as transport, heat and industry electrify. Recent analysis and policy publications underline the scale of change required, including substantial growth in flexibility and operability services to manage a renewables-heavy system.
At the same time, Britain’s legacy firm generation fleet continues to retire. The closure of the UK’s last coal-fired power station in September 2024 marked a historic milestone, but also removed a source of firm capacity from the mix. In parallel, the nuclear fleet faces a well-documented “cliff edge” during the late 2020s, despite recent life extensions.
“Flexible generation is the shock absorber of the power system,” said Zach Dodds-Brown, Development Director at Terra Firma Energy. “As we build more wind and solar, we also need reliable capacity that can respond in minutes, to cover forecast error, sudden plant outages, low-wind cold spells, and the increasingly sharp ramps that come with high renewable penetration. That is how we protect consumers and keep the system resilient during the transition.”
Capacity Market signals a tightening outlook with volatility risk from late 2026
TFE noted that the Capacity Market (CM) continues to provide a strong signal of the value of firm, dependable capacity in a changing system. Government publications reiterate the CM’s role as Great Britain’s key mechanism for ensuring sufficient capacity margin at least cost, particularly for stress events such as cold, still periods with high demand and low wind.
Clearing prices for Delivery Year 2026/27 reached historically high levels, £63/kW/year, reflecting increasing competition for dependable capacity and the growing importance of security of supply.
“These high-value CM contracts coming into effect towards the end of 2026 are a clear market signal,” Dodds-Brown added. “They point to the start of a more volatile period for Britain’s power supply, not because clean power is the wrong direction, but because the transition demands much more flexibility, much faster delivery of enabling infrastructure, and a pragmatic approach to keeping firm capacity available while the system transforms.”
Supporting Clean Power 2030 with dependable flexibility
TFE welcomed the Government’s Clean Power 2030 Action Plan, including the recognition that security of supply must be protected during the build-out of renewables and networks, with reserve and balancing capability remaining essential through the decade. TFE also pointed to NESO’s work on Clean Power 2030 pathways and Future Energy Scenarios, which consistently identify flexibility and operability as core enablers of a secure net zero pathway.
About Terra Firma Energy
Terra Firma Energy constructs, owns and operates flexible power generation plants across the UK. With three operational sites and additional sites under construction totalling 116MW, the company is expanding through development and acquisition to support the UK’s transition to a resilient, flexible, low-carbon energy system.
Contacts
Terra Firma Energy Limited
Helen Aletras
Head of PR and Communications.
Tel: +44 (0)203 890 3116.
[email protected]
