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…

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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…

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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…

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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…

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A recent discovery strikes an interesting note

This time of year is full of music, with carol singers out in force and the ubiquitous Christmas “hits” playing on loop in every store, but a recent discovery has brought music to mind in a different way…   The music of the spheres – Pythagorean theory of the universe The ancient Greeks described music…

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Smoke and mirrors: talking up battery storage

There has been quite a bit of news-flow about battery storage over the past couple of weeks. There was the announcement that Elon Musk had succeeded in his bid to delivery the world’s largest battery storage facility to South Australia within his 100-day deadline, while in the UK the new capacity market register was published…

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Is it time to look differently at security of supply?

National Grid’s outlook for the coming winter is somewhat more positive in capacity terms than in previous winters, with a capacity margin of 6.2 GW or 10.3%. “We are confident that we have the right products and strategy in place to help us to balance the system, even under colder conditions than we have experienced…

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