The rise of the corporate PPA

  Power Purchase Agreements (or “PPAs”) have been around for a long time, as agreements between market participants for the offtake of electricity from generating facilities. However, the past few years have seen the rise of the so-called “Corporate PPA” where companies whose business is not related to energy are procuring the electricity the use…

Read More

National Grid issues gas deficit warning as cold weather bites

As the UK shivers under attack from the “Beast from the East” – this morning National Grid issued a Gas Deficit Warning, indicating that the gas system was almost 48 million cubic metres (“mcm”) short relative to forecast demand. At 05:00, National Grid was expecting demand to reach 395 mcm for the day, with around…

Read More

Responding to the challenges of transmission system transformation

Last week, National Grid outlined its plans for it system operator business, following the decision by Ofgem last year that greater separation of this activity was needed from the rest of the National Grid business in order to better manage conflicts of interest. “Our long-term vision is for an Electricity System Operator (ESO) that thinks…

Read More

T-1 capacity auction: gas wins; consumers lose

Last week saw the first T-1 capacity auction since the GB capacity market launched, clearing in the 14th round of bidding at £6 /kW/year. 10.7 GW of de-rated capacity entered the auction, with 5.8 GW of that being successful in securing contracts. Added to the 47.5 GW that was secured in the T-4 auctions this…

Read More

Retail energy market: does size matter?

The collapse of GB Energy in November 2016 was seen by many as the start of a market correction, with other small independent suppliers being seen as vulnerable to rising prices and higher volatility. In the event, 2017 was quieter than expected – market prices and volatility both stabilised, and there were no further exits…

Read More

Updating frequency control and reserve markets

In December, National Grid published a new roadmap for its frequency control and reserve markets, setting out the principles which are to govern the development of balancing services products with a view to providing greater clarity and investor certainty. Described in more detail below, the changes are designed to simplify the procurement process and allow…

Read More

Review of 2017 and the key themes for 2018

A year ago I set out my key themes for 2017, and as predictions go it was definitely a mixed bag! In this post I review the key themes of 2017 and look forward to the current year.   What didn’t really happen in 2017… # Creation of an Independent System Operator In January, Ofgem…

Read More