Take on me… Proposed Balancing Mods

Since the new SEM go-live on 1 Oct 2018, a topic of heated discussion has been the volatility and extreme prices seen so far in the Balancing Market (BM) including very high prices and a greater than expected incidence of negative balancing prices.

The highest prices seen in the balancing market so far have been €1.4k/MWh and €3.8k/MWh, both incidents of which occurred during significant plant trips in Northern Ireland. In both cases, plant bidding high prices set the balancing price and a major factor of this was due to constraints. The Regulatory Authorities (RAs) have expressed concerns that the BM design was a contributing factor.

Related thinking

Announcement

Energy market and net zero transition learning and development: Role-relevant career development training

We’re well over halfway through the calendar year and are now beginning to see more of the government’s thinking and policy-shaping around what needs to change to meet the 2050 net zero target. For example, the flurry of documents issued towards the end of 2020, including the Energy White Paper...

Commercial and market outlook

Evaluating the benefits of local coordination mechanisms in power supply

In March, Cornwall Insight launched its new Energy Spectrum Europe publication in collaboration with the Institute of Energy Economics at the University of Cologne (EWI). Below is an extract of our Energy Perspective article from our latest issue, written by Konstantin Gruber and Nils Namockel from EWI. Local forms of coordination are...

Energy storage and flexibility

How nuclear energy can help the UK reach its net zero goals

This article was originally written 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. There are several challenges to reaching net zero, where its proponents believe nuclear could add value. Some of tomorrow’s main issues concern: How to provide low...

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...

Announcement

The top 5 podcasts of 2020

We released 13 podcasts in 2020 covering all aspects of the energy market, from the Capacity Market and Electric Vehicles to Faster Switching and heat networks. Here are our top five podcasts of the year, ranked by the number of people who listened. 5. The Impact of COVID-19 on System...

Energy storage and flexibility

DNO to DSO: A work in progress

Last month the Electricity Network Association (ENA) published updated figures regarding the procurement of Distribution Network Operator (DNO) flexibility services. This is the latest update from the ENA since April this year, with the document highlighting the historical uptake of services across the DNO regions. The publication also provides projections...

Energy storage and flexibility

Imbalance prices rise for sixth consecutive month

This week we delve into system imbalance pricing, and look at the latest movements from the Balancing Market (BM). The BM ultimately reflects the actions taken by the transmission system operator to keep the system balanced. These actions determine the Imbalance Settlement Price (ISP) for each of the half-hourly settlement...

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...

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