Tight system sees power prices spiking

Does the current tight system give a flavour of the winter ahead? This week has seen high peak power prices, with day-ahead prices in the N2EX auction spiking at £999/MWh yesterday, as the system was shocked by a combination of planned maintenance, unplanned outages, low wind output and high demand as the unseasonable warm temperatures led…

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National Grid to recover most but not all black start costs

Back in June I described the increasing costs National Grid is incurring to protect the UK’s black start capabilities. Over the summer, Ofgem issued its decision on cost recovery, and ruled that while National Grid could recover the costs of the Fiddler’s Ferry contract, only part of the Drax costs would be recoverable. National Grid…

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Escalating costs of black start grid support

National Grid has applied to Ofgem for the recovery of £113m it has committed under two “Black Start” contracts signed with SSE Fiddlers Ferry and Drax power stations in late March this year. Black Start provisions are incentivised under the Balancing Services Incentive Scheme, a two-year scheme (2015-17) where National Grid is measured against a…

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Winter 15/16 in 3 charts

  Last week, to little fanfare, National Grid published its review of the UK’s electricity and gas markets for the 2015/16 winter period. Despite literally dozens of reports in the press at the start of the winter warning of the very high risks of blackouts, the lights remained very firmly on. The reports were right…

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