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.