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 May report are:
- Average short prices for April increased marginally to £59.2/MWh, while long prices decreased 14% from April to £29.8/MWh, tracking the 9% drop in wholesale prices as gas costs continued to fall.
- Accepted bid and offer volumes for coal plummeted to 0 GW and 3.3 GWhs respectively. GB went for 192 hours without coal generation in May, the longest period without coal since 1882.
- April Bid and Offer volumes continued to decrease by 27% and 29% to 524 GWh and 577 GWh respectively, with CCGTs remaining the main contributor at 68% and 83% of total bid and offer acceptances. Bid acceptance volumes for wind dropped from 155 GWh to 59 GWh relative to April.
- Reduced marginal costs and increased top percentile prices for gas recips caused monthly profits to increase 39% from April to £1,232/MW, with 72% of total margins being imbalance revenues. Trading hours increased 30% to 91 hours.
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