On the first anniversary of the SEM market, we analyse how market volatility of the day-ahead power market has changed since go-live in October 2018, and what events have affected this. The day-ahead market has accounted for over 90% of ex-ante trades to date, with the remaining stake spread across the intra-day markets.
Related thinking
Announcement
Your invite to our wholesale Summer Outlook 2021 webinar
We are delighted to invite you to our wholesale Summer Outlook webinar. On 12 May, Cornwall Insight will be hosting an open webinar covering our independent views, analysis and outlook of the upcoming summer 2021 period. As part of this session, we will explore a range of both historic and...
Announcement
BBC interview | Robert Buckley discusses Ofgem’s price cap
Robert Buckley spoke to Felicity Hannah on BBC Five Live’s Wake up to Money programme ahead of Ofgem’s announcement to increase the default price cap by £96 to £1,138. Robert explained that a combination of a rise in wholesale prices and policy costs for renewable electricity, as well as the inclusion of £23.69...
Low carbon generation
Analyse thy neighbour: Interconnectors and their importance to future power prices
Whilst we build towards 2021 and post-Brexit energy markets, focus has been applied to how we in GB strive towards net zero ambitions with a more independent policy agenda. However, regardless of future trading arrangements, interconnectors with EU nations will continue to play a pivotal role in driving wholesale power...
Regulation and policy
Ofgem faces RIIO-2 balancing act for net zero
The regulator recently issued the draft determinations for the RIIO-2 price control for the transmission and gas distribution networks and the electricity system operator (ESO). These price controls will run for five years from April 2021. Shortly after, it also set out the next stage of detail – the “sector...
Low carbon generation
Flexible Asset PPAs – more capacity, more competition
The Power Purchase Agreement (PPA) market for flexible assets in the last six months has both grown in size and seen increased levels of competition as new offtakers and optimisers make themselves known in the market. What do we mean by the PPA market for flexible assets? We mean the...
Low carbon generation
Power demand in Lockdown – Initial COVID-19 impact on the power market
The power and gas systems are mirror images of the wider economy, entering practically every aspect of work and leisure. They naturally face challenges as a result of the effects of the COVID-19 virus on the way we work, travel and live. Electricity demand has reported to have fallen in...
Commercial and market outlook
The 2020 oil price crash: How does it compare to previous events?
This feature is part of our new Energy Market Watch coverage where each week we will provide insights and analysis on the latest trends in commodity markets, grid balancing and market fundamentals as the impacts of COVID-19 continue to emerge. You can sign up for the regular free update here. Brent crude oil...
Home supply and services
Ring of fire: Cost of energy falling
In this week’s blog, we discuss reductions in wholesale prices from Bord Gáis' recent report, the Energy Index, released on the 14 January. The Index explores market developments and price movements in oil, gas, coal and electricity. Despite reductions in wholesale prices, which make up a substantial proportion of retail bills, energy...
