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New gas-peaker plants highlight changing role of gas on UK grid

9/6/2026

News

Aerial view of the Hirwaun power station Photo: Drax
The Hirwaun power station in South Wales, the first of three new Drax OCGT gas peaker plants designed to provide flexible generation and grid-support services as renewable energy capacity grows

Photo: Drax

New gas-fired power plants continue to be developed in the UK even as gas loses market share to renewables, reflecting the fuel’s evolution from continuous to peaker role supporting an electricity system increasingly dominated by wind and solar generation.

The latest example comes from Drax, which has completed commissioning of the Hirwaun power station in South Wales. The facility is the first of three 299MW open-cycle gas turbine (OCGT) plants the company is developing across England and Wales, with the projects expected to provide around 900MW of capacity when fully operational.

 

Rather than supplying large volumes of day-to-day electricity generation, such plants are designed to provide power during periods of high demand or when renewable generation cannot meet system requirements. The three facilities will be remunerated through a combination of capacity market agreements, system support services and peak power generation, with capacity market contracts extending to 2039.

 

According to Drax, the plant can also operate as a synchronous compensator, providing services such as inertia and voltage control without generating electricity. Such services are becoming increasingly important as renewable generation displaces conventional power stations that historically helped maintain grid stability.

 

A similar approach is being taken by Statera Energy, which recently completed the first engine firing at its 450MW Thurrock Power project in Essex, ahead of full commissioning later this year.

 

The facility is co-located with a 300MW/600MWh battery energy storage system (BESS), creating a combined site capable of delivering 750MW of dispatchable capacity. Statera said the BESS will manage short-duration balancing requirements, while the gas-fired plant will provide sustained support during extended periods of low renewable generation.

 

The Statera Energy facilities are intended to strengthen grid resilience across London, Essex and southeast England, supporting electricity demand equivalent to up to 2.4 million homes. The project has also been designed with a pathway to future hydrogen operation.

 

Statera Energy’s 450MW Thurrock Power project in Essex

Photo: Statera Energy 

 

The Drax and Statera Energy projects highlight the growing importance of flexibility as renewable generation accounts for an increasing share of electricity production.

 

That role comes as gas continues to lose ground to renewables in the wider electricity mix.

 

Analysis published by energy think tank Ember found that gas accounted for 21.8% of global electricity generation in 2025, down from 23.9% in 2020, marking the fifth consecutive year its market share has declined.

 

The organisation found that 61 of the world’s 124 gas-generating economies have already passed peak gas generation, including the UK, Germany, Italy and Japan. Ember said solar outcompeted gas in 2025, with solar generation growing 17 times faster than gas generation and accounting for around three-quarters of new global electricity demand growth.

 

According to Ember, renewables are increasingly meeting new electricity demand growth, while concerns over fuel-price volatility, energy security and geopolitical disruption are encouraging greater investment in domestically produced electricity.

 

The findings suggest gas is increasingly playing a supporting role within electricity systems. While renewables continue to capture a growing share of generation, investment is continuing in assets designed to provide balancing services, system support and back-up capacity during periods of lower renewable output.