Introducing Energy Intelligence
Key updates for your business from the world of energy
The energy landscape can be a complicated place to follow. This is why we have compiled all the key updates on new developments in the energy markets, regulatory affairs, leading media stories, as well as our recommendations for other valuable content and sources of information.
We believe that good understanding of energy market trends is necessary to make sound decisions for your business. Our team of experts is committed to sharing their expertise and simplifying the complexity of the energy sector.
For educational resources, visit GridBeyond Academy to explore our CPD accredited courses and webinars, or get in touch with our friendly team to discuss the current market opportunities available to your business.
Triads & The Targeted Charging Review
The Targeted Charging Review – What Does it Mean for Triads?
On 31st of March, Ofgem announced its decision to postpone the implementation of the reforms outlined in the Targeted Charging Review by a year. This means that energy users with half-hourly meters on their sites will be able to avoid Transmission Network Use of System Charges by lowering their consumption at peak times for the next two years Winter 2020/21, and Winter 2021/22.
The Targeted Charging Review is part of Ofgem’s ongoing work to update the way that consumers pay for their use of the electricity network infrastructure. In November 2019, Ofgem decided that it is unfair that some energy users are able to reduce their consumption at certain times to avoid cost which ultimately falls onto those unable to take actions to avoid it.
In consequence, from April 2022 the residual components of the Transmission Use of System (TUoS) and Distribution Use of System (DUoS) charges will be changed to a fixed-charge-per-day-per-site system changed.
What happens to energy market during COVID-19?
The current pandemic has highlighted our global reliance on technology and electricity. Millions of people are now confined to their homes for work, shopping, hobbies and communicating with friends and family. This represents a seismic shift in how power and utility businesses need to provide their crucial services.
“With the increasing risk of unpredictable demand, we can at least be thankful for the steps made in digitalising and decentralising our grid, and the smart grid solutions at hand to counter any volatility during these unprecedented circumstances.”
“Technologies such as battery storage and demand response will be crucial to managing grid frequency, more than ever, and are part of National Grid’s ammunition in tackling an unplanned crisis. GridBeyond will, like many other businesses, be providing key energy services to the grid. Ours takes form in site demand response as well as battery control both behind and in front of the meter. We will be doing everything we can to be of assistance to the transmission and distribution network operators.”
Mark Davis, Managing Director for UK & Ireland at GridBeyond
Regulatory and Market News
- National Grid – National Grid confirmed Firm Frequency Response (FFR) monthly tenders and weekly auctions will not be affected by the COVID-19 pandemic and will continue as planned.
- Capacity Market – The clearing price at the T-4 Capacity Market auction (6th March) with the delivery for 2023/24 brought the market back on track with the price set at £15.97/kW/y – almost double the previous auction which cleared at £8.50/kW/y.
Gas made up the bulk of the awarded volumes; DSR secured 2.6%. Out of 4GW submitted by coal plants, only won 1.3 GW won contracts. This may quicken the end of the coal on the system which will impact the availability for National Grid to access system inertia and, in consequence, increase the need for higher volumes of energy storage and balancing services.
All GridBeyond’s units submitted in this auction secured contracts for delivery.
Greenhouse Gas Emissions Drop
UK greenhouse gas emissions fell 3.6% in 2019 compared to 2018, and were 45.2% lower than in 1990
2019 UK Provisional Greenhouse Gas Emissions figures published by the Department for Business, Energy & Industrial Strategy show significant progress in cutting UK domestic emissions.
The positive change over the last year was driven mainly by decarbonisation of the energy sector, which saw a 13.2% annual fall in emissions as more coal-fired power stations closed and renewables capacity – mostly from offshore wind – continued to grow.
Source: 2019 UK greenhouse gas emissions: provisional figures – statistical summary link
UN Climate Change Conference (COP26) postponed until 2021
Due to the disruptions caused by the coronavirus pandemic, the United Nations has postponed the next global climate summit by a year, which was set to take place in Glasgow.
COP26, the 26th annual Conference of Parties to the United Nations Framework Convention on Climate Change, is expected to review the global progress in implementing the measures outlined in the Paris Agreement and advance the pace at which countries reduce their CO2 emissions.
Topical News from the Media
- The Telegraph, The energy industry is on war footing as it prepares to fuel the coronavirus battle
- The Energyst, Coronavirus: GridBeyond Urges DSR providers to notify of demand changes
- BEIS, 2019 UK greenhouse gas emissions, provisional figures
- Business Green, ‘Extraordinary progress’: UK emissions fell 3.6 per cent in 2019 amid clean power record
- Current News, Energy Sector welcomes postponement of COP26 as world faces ‘urgent threat’ from COVID-19
- Greentech Media, Coronavirus Derailed COP26 Talks, But Not Europe’s Appetite for Climate Action