GB Monthly Wholesale, Balancing & Asset Value Report – July 2020
The August release of Aurora’s Wholesale, Balancing and Asset Value, looking at the month of July, includes the addition of a new benchmark battery valuation section. This section shows how much profit a battery could have made through an energy trading business model, operating in the wholesale markets and balancing mechanism, using Aurora’s battery dispatch algorithm against outturn prices. In addition, the gas recip benchmark valuation analysis has been updated.
Other highlights of the report include:
- The continued rise in fuel prices and power demand resulted in a rise in July’s average wholesale price to £27.8/MWh – a 9% increase from June; the 8% increase in power demand resulted in a 34% (or 1.6 TWh) rise in thermal generation and a consequent 22% (or 0.7 MtCO2) increase in emissions relative to June
- Balancing action volumes fell by 10% relative to June as the increase in demand resulted in fewer periods where system stability was an issue for National Grid
- Operational gas recips saw reduced volumes in the balancing mechanism, with cashflows ranging from £1-3k/MW, as requirements for balancing actions were reduced
- Theoretical batteries under Aurora’s algorithm would have made £3-4k/MW, depending on duration and cycling rate, with captured price spreads ranging from £42-48/MWh