Energy Policy
Calls are growing for the UK electricity system to be managed by an independent system operator ("ISO") whose activities are separate from the ownership of the wires themselves. Such a change would require nationalisation of the system operation activities of National Grid, and the creation [...]
Subsidies and extra-market support now underpin every part of the UK electricity market, and as a result, some technologies benefit from double payments and others double charging, and since the double payments are going to diesel generators and the double charging to battery storage, the system [...]
The past few days have seen Tempus Energy surrendering its supply licence in order to focus purely on wholesale market trading, and Tidal Energy, the Welsh tidal stream technology company go into administration. Analysis by the Financial Times indicates that even in mature segments [...]
The Carbon Price Floor (“CPF”) is a UK government mechanism designed to support decarbonisation by making it more expensive to generate electricity with carbon-intensive fuels. The doubling in the CPF in 2015 from £9 / tonne to £18 / tonne means the CPF now [...]
The first auction for enhanced frequency response (“EFR”) in the UK closed at the end of August, with just over 200 MW being secured by National Grid under 4-year contracts, at unexpectedly low prices. All of the winning sites were as yet un-built battery [...]
Transmission systems are key to delivering security of supply and yet tend to be treated as an afterthought - note for example Germany's massive deployment of renewables in the north of the country without a corresponding investment in the necessary transmission capacity to deliver it [...]
Turndown DSR is what most people think of when demand-side response is mentioned, ie reduction of demand by consumers in response to either price signals or instructions from the system operator. As it involves reduced consumption and moving consumption from periods of higher to [...]
I’ve been thinking a great deal recently about how policymakers can address the challenges of stalled investment in the energy markets. My post yesterday on system tightness underlines the importance of the challenge, so I was pleased to come across this excellent paper from [...]
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, [...]
It’s now been a week since the momentous decision by the British electorate to turn its back on EU membership, and the markets have responded with predictable volatility. The questions we are all asking, alongside the obvious ones about what form our exit will [...]