On 7 May, the System Operators released the final results of the 2022-23 T-4 capacity auction, setting out the winners of agreements. While previous T-1 auctions are not comparable, the System Operators were satisfied that prices between the auction had been stable. The clearing price was €46,150/MW, for a total cost of €342mn. As we noted a few weeks ago in our blog ‘There is light that never goes out’ this is an important auction in signalling what capacity will seek to connect to the networks over a period of significant close-down of thermal assets: 1.6GW is expected to leave the system within five years.
Related thinking
Low carbon generation
Our Renewables Pipeline Tracker: In with the new – scoping projects and progression through planning stages
Our latest Renewables Pipeline Tracker was published on 11 June, and this blog provides a summary of some of the recent developments in our coverage of the pipeline for new build and repowering renewables assets in GB. What’s new? Seabed leasing rounds, scoping projects and CfD announcements Since our previous...
Commercial and market outlook
Data centres predicted to become prosumers of electricity
In combination with Cornwall Insight and Bit Power, Host in Ireland published its Biannual report of Ireland’s Data Hosting Industry. The report highlights the importance of sustainability in Ireland’s digital transformation. The report confirmed the number of operational data centres in Ireland increased by 25 per cent over the past...
Commercial and market outlook
In the midst of the Australian Energy Transformation Process
Australia is in the midst of an energy supply and distribution transformation. This transition is twofold and includes not just bridging the gap from conventional fossil fuels to renewable technologies (due to their reduced carbon footprint, lower levelized cost of energy and improved reliability levels by comparation), but also requires...
Low carbon generation
Nuclear energy and its potential importance for net zero
This article was originally written as a longer piece in Energy Spectrum on 21 March 2021. To find out more about a subscription to Energy Spectrum, please contact Nick on n.palmer@cornwall-insight.com. Nuclear energy has been an integral part of the UK’s electricity system for many decades. Currently, nuclear provides around...
Energy storage and flexibility
Glory Days – T-1 auction clears at £45/kW
To say the T-1 Capacity Market (CM) auction clearing at £45/kW per year was a surprise feels like an understatement. It looks like a major windfall for successful participants in the auction – many are asking just what happened? Easy money Until February, it looked like prices would clear at...
Announcement
GB consultancy: Our 2020 highlights
We are independent commercial advisors to over 300 energy companies from generators, project developers, energy suppliers, network companies, investors, government departments and professional firms. Our team has over 40 years of energy market experience and works across the whole energy chain. Here is a small selection of our work in...
Commercial and market outlook
Divergent electricity prices in the wake of Brexit
On 1 January 2021, the UK left the European Union (EU) and as such is no longer part of the Internal Energy Market (IEM). While the UK and the EU agreed a post-Brexit Free Trade Agreement (FTA) on 24 December, outlining how energy markets, interconnectors and regulation will be affected,...
Low carbon generation
Renewables Pipeline Tracker: Higher, faster, stronger – the changing nature of offshore wind
Having released our October 2020 Renewables Pipeline Tracker report, which covers the latest developments for pipeline renewables sites across GB, this blog explores our recent findings on the pipeline and in particular offshore wind. The Renewables Pipeline Tracker is updated quarterly and includes information across over 1,000 prospective renewables sites...
