Energy Pricing
Last week, National Grid ESO published the first costings for its Future Energy Scenarios (“FES”). The key conclusions of its analysis are: The cost difference between the four scenarios is just 7% The total cost of each scenario over the next 30 years is [...]
There are signs of squeezed power market supply and demand margins. Last week saw National Grid ESO issue two Electricity Margin Notices (the new name for the Notice of Inadequate System Margin, or “NISM”), warning of a potential shortfall in electricity generation in the [...]
This month saw a flurry of negative press about smart meters as journalists awoke to the implications of some proposed industry changes that could lead to suppliers remotely switching off appliances used by domestic consumers. Back in July, SSE proposed a modification to the [...]
To provide some light relief from the pervasive discussions of the novel coronavirus, I thought it might be nice to look at an interesting aspect of the Brexit negotiations. Brexit sentiment has swung significantly if perhaps not yet decisively towards a “no-deal” Brexit, and [...]
As the country largely remains locked down, electricity demand continues to be low, and renewable generation high, particularly in the current sunny weather. This is creating challenges for National Grid ESO in balancing the electricity system, and so it is introducing new tools to [...]
I wrote recently about the increasing incidences of negative electricity prices, driven by the limited ability to store electricity meaning that to all intents and purposes, electricity is consumed as it is generated. However, electricity is not the only market where prices can turn [...]
Last week I participated in a webinar hosted by Energy Live News on how the covid-19 on users, brokers and suppliers, which covered some interesting points not mentioned in my previous post on the subject. Market liquidity on the prompt is largely unchanged Gas [...]
One of the consequences of the energy transition and the increase in renewable generation on the electricity system has been the growth in negative electricity prices, where production is curtailed and/or consumers are paid to take surplus generation. These events are still relatively rare [...]
The June 2019 capacity auction for delivery next winter cleared at the record low price of 77p /kW, with 129 units securing contracts covering 3.6 GW of capacity. The previous T-1 auction in February 2018 cleared at £6 /kW for 5.8 GW of capacity, [...]
The rapid deployment of renewable generation, and its impact on the electricity system in terms of transmission capacity management, balancing intermittency and frequency control has triggered the need for an entirely new suite of flexibility products. At the same time, the opportunities to earn [...]