Growing threat to energy supplies sends a shiver across industry
"Richard Howard, of Aurora Energy Research, a consultancy, said: “When the government thinks about gas security of supply, their methodology says, 'What happens if one of our critical pieces of infrastructure goes down?’. Actually what happened in the beast from the east is four pieces of our critical infrastructure were affected by the cold. It tends to suggest the methodology is a bit flawed...If you want to think about power security of supply, you also have to think about gas. If you have a really cold spell and it’s windless and things start to freeze, you are talking about correlated risks which could unfold in different markets at the same time.”"
19 March 2018 | Tagesspeigel Background - Energie & Klima
Investing in subsidy-free renewables requires understanding of new risks
"Manuel Koehler, Managing Director at Aurora Energy Research, Berlin, sees market driven renewables buildout in danger, should capital costs not be kept under control. “Falling subsidies means higher risk exposure for investors. Rising capital costs could delay the energy transition by up to eight years.” "
Global energy giants forced to adapt to rise of renewables
"John Feddersen, chief executive of Aurora Energy Research, said the two firms were going in very different directions, but the path E.ON had taken was less well trodden. “This is to some extent a question of try it and see what works. [For E.ON], owning grids and lobbying government for good regulatory outcomes is a well-understood business. However, the [customer] services side is untried,” he said.
Investors seem to like the paths E.ON and RWE have taken, with big bumps in the share prices of both after the deal. But no one knows if we will be back here in two years’ time. “I would view this very much as a test of the right structure for an energy company,” said Feddersen."
16 March 2018 | Tagesspiegel Background - Energie & Klima
E.ON and RWE could face rating downgrade
"What does renewables market exposure mean for energy suppliers? The consulting firm Aurora Energy Research has recently dealt intensively with this question and examined it in its electricity market model. Benjamin Merle, project manager in Berlin, told Tagesspeigel Background that utilities are used to hedging themselves against risks in conventional generation in the short and medium term. "However, renewables entail a number of risks of their own if they are exposed to the market." From Aurora's point of view, there are five key risks. According to Aurora expert Merle, it is certainly advantageous to strive for a mixture of conventional and renewable power plants in the power plant portfolio. "
On-Time Hinkley Reactor Could Upend U.K. Need for Gas in 2020s
""The latest auction price was “driven to unprecedented lows,” said Richard Howard, head of research at Aurora Energy Research. This was due to falling power demand as well as competitive bids by so-called demand response providers, who reduce or shift their usage during peak times, and cross-border cables known as interconnectors.""