We are pleased to present Aurora’s GB Distributed and Flexible Energy Market Outlook Report for H2 2019. This half-yearly update presents Aurora’s comprehensive view on the state of the market, and includes our latest outlook on capacity, wholesale, balancing, ancillary and local flexibility markets.
Key highlights from the H2 report are:
- The Government’s commitment to Net Zero by 2050 as well as low clearing prices in the recent CfD auction confirm the pace of the energy transition and the requirement for flexibility
- The Capacity Market has been reinstated; three auctions will be held in early 2020, with outcomes dependent on participation of large thermal assets
- The future of carbon pricing remains uncertain, largely due to Brexit; the Government has indicated that a linked ETS scheme is the preferred option but a tax to replace the ETS is also possible
- Wider BM Access will allow participation of a greater pool of flexible assets in the BM from early 2020, while Project TERRE is delayed until the second half of 2020
- Ancillary services continue to develop, with week-ahead FFR auction trials beginning in full, and upcoming removal of pre-agreed utilisation prices for Reserve services
- Charging reviews are ongoing, with final decision on TCR expected imminently; demand Triad revenue stream will be removed but uncertainty surrounds BSUoS
- Local Flexibility Markets are scaling up; WPD procured 119 MW in its latest tender while UKPN is aiming to procure 170 MW in its 2020 auction
The report can be downloaded in PDF and the underlying data in Excel format from the download section of EOS.
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