Five things we learnt from Energy Spectrum | 658

As the details of the three domestic and small business energy efficiency measures announced in the Chancellor’s Spring Statement – a new Future Homes Standard, a commitment to “green the grid” and a proposed scheme for SMEs – are firmed up, we believe that innovation, affordability and diversity in setting delivery channels will prove essential to reducing carbon emissions from premises. This is the conclusion of this week’s Energy Perspective, in which we look in more detail at the initiatives outlined by the Chancellor and explain why they are both important and timely.

The proposed technical amendments to the capacity market set out by BEIS in its 7 March consultation are, in part, a direct response to Tempus Energy’s recent state aid challenge. They also demonstrate learnings from the department’s ongoing five-year review, as we discuss in our Policy section. The consultation, which includes proposals around a replacement T-3 auction to be held in early 2020 and the introduction of generating technology classes for solar and wind closes on 4 April.

With the incentives framework now in its second year, National Grid Electricity System Operator (ESO) is expected to show how its activities make progress in order to build on and go beyond its existing commitments in its forward plan. In this issue’s Regulation section, we look in more detail at an open letter from Ofgem urging the ESO to present a clearer picture surmising that the regulator clearly still needs some convincing on proposed performance metrics.

The publication of the recent industry update regarding the Firm Frequency Response (FFR) market is welcome in providing current and future FFR participants with greater clarity on many of the major developments. In our Industry Structure section, we look at the update in more detail.

In this issue’s Nutwood section Cornwall Insight Associate Peter Atherton analyses the recent financial results published by innogy, asking what they can tell us about the current state of the GB supply market.

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Data critical for sustainable investments

On 24 June, attendees to our 'Financing net zero forum' tuned in to hear the expert panel discussions on the role of data in sustainable investment. Joining the meeting chairs, Cornwall Insight's Daniel Atzori and Emma Bill were our guest panellists from Mercatus and Victory Hill Capital Group LLP. For investors to make...

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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...

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Get ready for climate risk reporting?

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Calm before the storm? 2021 energy supplier compliance developments

The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

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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 Nuclear energy has been an integral part of the UK’s electricity system for many decades. Currently, nuclear provides around...

Low carbon generation

Up north and down south – trends for generator TNUoS charging

The topic of generator Transmission Network Use of System (TNUoS) is becoming a subject of increasing interest for stakeholders as regulation, policy, and the generation mix create potential volatility for future charging trends. The significant costs posed through TNUoS are an important consideration for generators, with high variability between regions...

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Answers to some FAQs about Brexit

Following the end of the transition period on 31 December 2020 and the signing of the Trade and Cooperation Agreement, aspects of the relationship between UK and the EU in respect of the arrangements for energy trading and cooperation have changed. We set out answers to some Frequently Asked Questions...

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A look back at 2020 part 3

As we take our first steps into 2021, we continue to look back at the biggest developments in the UK energy markets in 2020, setting us up for the significant year ahead. The mergers and exits from the supply market that were seen in 2019 continued into 2020 and led...