Posted on: 07/02/2017
DSR misses out in the Capacity Market
Following the Capacity Market Early Auction last week, Head of Technology Jim Marshall discusses the results and what it means for the market.
Last week, National Grid ran the Capacity Market Early Auction to secure capacity for winter 2017.
The auction cleared at the lower-than-expected price of £6.95/kW, with contracts awarded for 54GW of capacity. This means the total cost of securing supply for next winter will be £378 million.
(Our Pricing Team will be presenting our latest forecasts...
Posted on: 31/01/2017
Smart businesses should recognise their electricity is no longer a utility
Today the National Grid will invite bids to provide 53.6GW of capacity to help keep the lights on when electricity supplies run low next winter. This process will ensure the lights stay on and the principal way it will do that is to pay large, old power stations a benefit to continue to make themselves available. Without these payments from National Grid, many of these power stations would not be commercially viable and they would shut down and decommission.
The above solution is very much the ...
Posted on: 25/01/2017
Why is certified renewable electricity so important?
Last week, SmartestEnergy launched the UK’s first certified 100% renewable electricity supply product. Head of Marketing and leader of the product’s development, Mike Shirley, explains why this is such an important milestone for the industry.
Many of the UK’s biggest companies are now choosing to be supplied with renewable electricity. This increased demand for clean energy is good news for the planet, for renewable generators, and for the consumers that buy from these brands.
But there is...
Posted on: 22/12/2016
2016 – a big year for batteries
This year has seen significant developments for battery storage - with EFR contracts awarded in the summer and the Capacity Market in early December, the sector has really gathered pace.
Here’s a round-up from our Demand Side Management expert, Robert Owens, of all things batteries for 2016…
1) Frequency Contracts
Good news for independent developers in the EFR auction back in August. Out of the total 201MW of awarded capacity, 60% belongs to independent companies. However, the successful...
Posted on: 20/12/2016
What does 2017 have in store for electricity bills?
With Drax’s Contract for Difference (CfD) approved yesterday and the Capacity Market running this winter, business energy users can expect to see higher non-commodity charges on their bills in 2017. Key Account Manager, Mark Cox explains some of the costs that customers need to be ready for.
News yesterday that the European Commission had approved the CfD for Drax to convert one of its coal-fired units to biomass was a timely reminder of the higher non-commodity charges forecast for 2017.
Posted on: 09/12/2016
Positive outcome for batteries in the T-4 Capacity Auction results
This winter’s first of three Capacity Market Auctions, the T-4 auction for delivery in 2020/21 cleared yesterday. VP of Demand Side Management Robert Owens comments on the prices and the positive outcome for battery storage projects.
After 11 rounds, the T-4 Capacity Auction cleared yesterday, with agreements for 52.43GW of capacity at a price of £22.50/kW/yr.
This is in the middle of expectations leading immediately up to the auction, which were hovering around £20-£25/kW/yr.
Posted on: 29/11/2016
Rising wholesale prices not the whole picture for generators
The latest SmartestEnergy Embedded Benefits webinar looked in detail at what has been happening to wholesale prices and charges along with forecasts for the future. Webinar presenter and Business Development Manager Matt Neve runs through some of the highlights.
Watching power market movements of late will have put a smile on the faces of some generators as winter approaches.
Recent weeks have seen some of the highest-ever peak electricity prices after a general upward trend which began early...
Posted on: 18/11/2016
Flexibility has crucial role to play in our future energy system
Following his presentation at the EMEX event in London this week, Robert Owens explains how Demand Side Response (DSR) and storage will drive the transition to a smarter energy system while helping companies meet their energy ambitions.
Ofgem and the Government recently launched a consultation seeking industry views on the shift they want to see towards a much more flexible energy system.
The prize on offer from greater flexibility is huge, with research by Imperial College and the Carbon...
Posted on: 20/10/2016
Risk Vs Revenue: the commercial case for DSR
Our Demand Side Response (DSR) webinar last week revealed how businesses can turn their flexible energy demand into a revenue creating asset with the capacity market. Robert Owens, VP Demand Side Management, talks us through how DSR can provide significant returns with minimal impact on business operations.
For many businesses that are building the commercial case for DSR, the challenge is ‘risk versus revenue’. Energy managers need to convince the board how DSR can provide an additional...
Posted on: 11/10/2016
Meeting the changing needs of independent generators
Following the release of our latest report on the independent generation sector, Iain Robertson, Generation Sales Manager, discusses the commercial trends we see emerging.
After several years of sustained growth and significant investment, the independent generation sector now finds itself facing a period of unprecedented challenges.
A combination of sudden subsidy changes, difficult market conditions and fresh political uncertainty in the wake of the EU referendum has shaken confidence and...