On 6 March, the EMR Delivery Body (National Grid ESO) published the provisional result of the T-4 Capacity Market (CM) auction for Delivery Year 2023-24. The clearing price for the auction was the highest value since 2016.
In this week’s Chart of the week, our expert, Lee Drummee explores some of the reasons for this result.
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Energy storage and flexibility
This weeks Chart of the Week takes a look at the costs incurred from balancing the electricity system over the last 12 months. The cost of all the actions and day-to-day operation of the electricity system are recovered through Balancing Services Use of System (BSUoS) charges. This changes in each...
Business supply and services
Despite the challenging year for businesses, we recorded growing interest in renewable electricity amongst businesses and Third Party Intermediaries (TPIs) according to our TPI Satisfaction Survey for 2020. This has been a focus for Industrial and Commercial's (I&Cs) over the last two years driven by corporate social responsibility goals, particularly...
Regulation and policy
Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...
Regulation and policy
On 10 June the BSC Panel approved the Market-wide Half Hourly Settlement (MHHS) Implementation Charge for 2021-22. The new charge, introduced under modification P413 Market-wide Half Hourly Settlement Programme Manager, will cover Elexon’s programme management costs for MHHS implementation. It will be levied on suppliers on a monthly basis, based...
Energy storage and flexibility
The Capacity Market (CM), introduced under the Electricity Market Reform (EMR) policy programme is designed to ensure security of electricity supply in GB. This is done by providing payments – determined through a competitive auction– to generators and eligible demand side response (DSR) and can encourage existing plant to remain...
Low carbon generation
On 11 December 2020, the EMR Delivery Body (National Grid ESO) published the prequalification registers for the T-1 (2021-22) and T-4 (2024-25) Capacity Market (CM) auctions. In this 'Chart of the week', we explore the prequalification picture for the T-4 auction and what this could mean in terms of pricing...
Commercial and market outlook
While lockdown may have been the most used word overall in 2020, in the energy sector net zero would certainly give it a run for its money. The raft of policy announcements, particularly in the last few weeks, will lead to a dramatic change in sector especially with moves to...
Low carbon generation
The next round of Capacity Market (CM) auctions are set to take place in March 2021, starting with the T-1 (Delivery Year 2021-22) on 2 March followed by the T-4 (Delivery Year 2024-25) on 9 March. The prequalification window for these auctions have been open since 20 July 2020 and...
