SEMO announced on 21 January that it was issuing an amber alert. This happens when the system margin is at a level where a trip of the largest in-feed would give rise to a reasonable possibility of either a failure to meet system demand, or cause a significant deviation in system frequency from the norm. This blog observes this announcement along with the impact of new balancing market modifications.
Related thinking
Announcement
The top 5 podcasts of 2020
We released 13 podcasts in 2020 covering all aspects of the energy market, from the Capacity Market and Electric Vehicles to Faster Switching and heat networks. Here are our top five podcasts of the year, ranked by the number of people who listened. 5. The Impact of COVID-19 on System...
Energy storage and flexibility
Editor’s Pick | Belgian capacity support to take novel form
This article was originally published in Issue 22 in Energy:2030. On 12 September, the Belgian Federal Commission for Electricity and Gas Regulation (CREG) issued a note on the implementation of a scarcity pricing mechanism in Belgium. Explaining that renewable generation may cause massive overcapacity in future with difficulties for generators relying...
Low carbon generation
New RO buy-out price confirmed amid expectations of mutualisation for a second year
Ofgem has published the Renewables Obligation Certificate (Roc) buy-out price and Mutualisation Ceilings for compliance period (CP) 18 of the scheme. On 21 February it confirmed the buy-out price will be £48.78 per Roc, a 3.3% uplift on the previous year, in line with RPI inflation. This is the amount...
Energy storage and flexibility
Tilted – high pricing in the Balancing Market
Since the launch of the new SEM market a topic which has undergone a great deal of scrutiny, discussion and investigation (not least by Cornwall Insight Ireland) has concerned the Balancing Market, and specifically how the balancing price (aka Imbalance Settlement Price) is calculated. The latest twist in the tale...
Energy storage and flexibility
All Along the Watchtower – pricing disputes in SEM
As we enter the fourth month of the new SEM market, it is already starting to feel a little like business as usual. There are still indications of high balancing price volatility and the odd surprise in the day-ahead, not to mention continued liquidity issues in the intraday continuous market....
Regulation and policy
Can Capacity Market costs be recovered via a ‘mirroring’ process in the Balancing and Settlement Code?
Elexon confirmed on Monday (10 December) that Issue 76 Using the BSC to support Suppliers and the Capacity Market Arrangements has been formed and the first meeting will take place next Monday (17 December). The outcomes of this process have the potential to enable suppliers to collect payments from their customers for...
Energy storage and flexibility
Local hero: constraints and security of supply
Security of supply is back on the agenda. Last week saw the Commission for Regulation of Utilities (CRU) publish its Electricity Security of Supply Report 2018. Replicating the analysis from the long-awaited All-Island Generation Capacity Statement 2018-2027 (GCS), it showed Ireland facing potential deficits within the next 6-9 years. The very same...
Low carbon generation
Coming the long way: wind forecast and imbalance prices
Last week wind generation accounted for 56% of the generation mix on an all-island basis. The market also saw significant volatility in the Balancing Market (BM), with the Single Electricity Market Operator (SEMO) receiving pricing disputes related to early trading in the BM. While there has been much discussion about...
