Posted on: 27/06/2017
The latest SmartestEnergy Informer Series webinar for generators will look at what has been happening to wholesale prices and benefits along with forecasts for the future. Head of Renewables Chris Smith highlights some of the areas which will be covered.
Volatility has continued to be a dominant theme on energy markets in recent months.
The growing impact that factors such as increased levels of intermittent renewable generation in the energy mix are having was highlighted recently by very wide swings seen in the balancing market. At one point, prices swung from the third highest cash-out price peak seen to near zero within days.
With a shift to a more marginal cash-out prices ahead and an ever-increasing proportion of renewable generation on the system our webinar will look at the prospects for further volatility and what it means for generators.
While cuts to embedded benefits have been under discussion for a long time, generators should now prepare for the proposed changes and the impact on income streams.
Last week Ofgem confirmed cuts to Triad payments that will be phased in between 2018-20, so we’ll look in detail at what the likely implications will be for generators in the years ahead.
Another change on the horizon is around transmission loss charges. Following the Competition & Markets Authority (CMA) investigation into the energy market, zonal transmission losses are being introduced from April 2018 in a bid to more accurately reflect the costs of losses as electricity travels along the network.
The CMA believes a zonal system will incentivise generation closer to the point of use with different impacts depending on where a generation project is based.
Our webinar will also look at what is happening on the wholesale power markets and assess whether generators are better off under a market Power Purchase Agreement (PPA) or taking the FiT export tariff.
We’ll also share updates on latest projections by our in-house pricing team on system and network costs and environmental schemes, covering the upcoming financial year and out to 2020 as well insight on the current market for ROCs.