Aurora’s Flexibility Market Summary provide a concise monthly review of recent events in key markets for flexible technologies. The initial focus is on the balancing mechanism and firm frequency response (FFR) markets with more ancillary services markets to be added over time.
Key highlights from the April report are:
- Average short prices decreased 7% to £57.9/MWh relative to March, while long prices increased marginally to £29.8/MWh. Wholesale prices remained low at £43.2/MWh as gas costs continued to fall.
- Reduced bid acceptance volumes for wind relative to April, from 440 GWh to 152 GWh, meant incidences of long system prices below £0/MWh were reduced by 74%.
- The Continuous Acceptance Duration Limit (CADL) was reduced from 15 minutes to 10 minutes effective from 1st April 2019, meaning assets in the BM stack accepted for shorter duration bursts are now included in the price calculation, potentially resulting in slightly more extreme prices when NIVs are high.
- April Bid and Offer volumes decreased by 39% and 40% to 715 GWh and 808 GWh respectively after unusual spikes in March, with CCGTs remaining the main contributor at 61% and 77% of total bid and offer acceptances.
- Reduced marginal costs for gas recips caused monthly profits to increase marginally to £885/MW despite low wholesale and system prices.
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