SHARE
+44 (0) 1865 952700 | contact@auroraer.com
Press enquiries
  • This field is for validation purposes and should be left unchanged.

Insight

Home/Summer 2020 Market and Policy Update

Summer 2020 Market and Policy Update

This report is from our subscriber webinar held on 22nd July 2020, and is now available to download on EOS.

Highlights of the report include:

  • Key recent policy updates cover carbon pricing, with a standalone UK ETS scheme looking like the most likely option post-Brexit; removal of barriers to entry for storage through import charges and planning regime changes; discontinuation of Firm Fast Reserve tenders and ongoing suspension of STOR tenders. Network charging reviews are ongoing, with initial conclusions expected later in 2020
  • Recent months have seen multiple gas recip and battery portfolios put up for sale, various agreements on route-to-market provision and significant new project announcements, including Highview’s 250 MWh liquid air energy storage plant. In addition, UKPN’s April 2020 local flexibility tender awarded 123 MW of capacity at a total cost of £14m
  • COVID-19 has caused drops in power demand which have resulted in record levels of renewable penetration on the GB grid; National Grid have been forced to take large volumes of balancing actions and introduce new emergency services in order to maintain grid stability. This has come at significant cost, with balancing costs up nearly £100m in some months relative to 2019
  • Stability and other system operability issues are being addressed through various means ahead of National Grid’s ambition to be able to run a zero-carbon grid by 2025. Phase 2 of the Stability Pathfinder will procure short-circuit level in Scotland; trials are also underway for provision of upwards and downwards reserve from batteries
  • Capacity Market targets for the 2020 auctions have been announced, with 41.2 GW for the T-4 for 2024/25 delivery and 0.4 GW set aside for the T-1 in that delivery year. Given the exit of Calon’s CCGTs in the last auction, as well as the increases in interconnector de-ratings, the auction is expected to be tight. The T-1 for 2021/22 has a target of only 0.4 GW

The exhibits from the report can be downloaded in PDF format from the download section of EOS.

This is subscriber-only content. To enquire about subscribing to our GB Distributed and Flexible Energy service, please get in touch.

View Report

Our subscription services

Our subscription service provides you with long-term market forecasts, strategic insight reports, interactive client forums and access to our market data and analytics platform.

Interested? Please sign up to receive our complimentary monthly summary reports via email. Simply tick which reports you would like to receive. Please indicate your consent in the box provided and view our privacy policy.

If you would like further information on a particular subscription service or report please enter further information in the box provided.

 

 

  • Please find our privacy policy here

  • In the July tender for delivery in August, there were 72 dynamic bids accepted, with a volume-weighted average price of £6.59/MW/h, down 5% from the previous month.

    Read More
  • With a focus on today’s COVID crisis, and on long-term price evolutions, this report looks at Aurora’s outlook for long-term renewables in the French power market.

    Read More
  • This note summarises the key details of the Government's latest response on “The future of UK carbon pricing”, and provides Aurora’s interpretation of potential considerations and results on the power sector.

    Read More