Kingsnorth decision unlikely before autumn

A decision on whether or not to build a new coal-fired power plant at Kingsnorth is now unlikely before the autumn, following moves by the energy and climate change secretary Ed Miliband to undertake a full review the UK's coal policy.

According to Guardian reports, a decision on the Kingsnorth plan is now not expected before the completion this summer of Miliband's review, which could result in the effective banning of new coal-fired power plants without carbon-capture technology.

A spokeswoman for the Department of Energy and Climate Change (DECC) confirmed that a decision on Kingsnorth would not be made until the department's consultation on "the conditions around new coal-fired power stations" has been completed.

The review was ordered last year following the climate change committee's recommendation that all coal plants have CCS technology fitted by 2025.

Miliband is believed to be in favour of standards that would require all new plants to fit CCS, but is locked in discussions with the Treasury over how to fund the rollout of the technology.

Jonathan Smith, spokesman for energy giant E.ON which plans to build the new plant at Kingsnorth, said that the company had not been expecting a decision on its proposals ahead of a government ruling on what constitutes "carbon-capture readiness" – a prerequisite of approval being granted.

"You cannot have a yes or no decision until there is a final ruling on the definition for carbon-capture readiness and we have no idea when that will be," he said.

However, the delay to the Kingsnorth decision, which was originally expected last autumn, will raise further concerns about the UK's ability to address an impending energy gap brought about by the closure of aging coal and nuclear power plants.

Smith said that without new coal-fired plants, the UK would have to increase its reliance on natural gas – a scenario that would leave the country increasingly exposed to price volatility and reliant on imports from countries such as Russia.

The spokeswoman for DECC insisted that the government was "aware of the need to ensure security of energy supplies", arguing that it was "continuing to look at other applications that will ensure we have the capacity to meet future demand for energy".

She added that it had "recently consented to three new power stations which are capable of powering four million homes and the second-largest wind farm in the world at Gywnt Y Mor".