net zero

  • Energy storage and flexibility

    Out with the old, in with the new: T-4 Capacity Market clears at record price

    On 21 February, the T-4 Capacity Market auction for Delivery Year 2026-27 cleared at a record high price of £63.00/kW/year, procuring 43,000.955MW of capacity. In this week’s 'Chart of the week', we explore the key takeaways from the auction.

  • Commercial and market outlook

    Nobody said it was easy, but it’s time for us to part: VIC’s climate targets & coal

    In 2017, the Victorian Government legislated a state target of net-zero greenhouse gas emissions by 2050. Since then, short-term targets have been set in five-year increments, with the 2030 target being to cut emissions by 45-50% below 2005 levels. The Government is currently consulting on the 2035 target, which must...

  • Low carbon generation

    Lower energy prices? More than just hot air

    The Victorian Government launched Australia’s first offshore wind targets as part of its transition towards a net-zero emission future. According to the target, 9GW of offshore wind will be installed by 2040, nearly quadrupling the total wind capacity in VIC. In this Chart of the week, we dive into the...

  • Commercial and market outlook

    Hogging the spotlight: the opportunity in the evening peak

    As the duck curve steepens and renewable energy penetration increases in the NEM, we briefly examine revenue share by time of day and highlight the growing opportunity in the evening peak. Will this become the new normal, with revenues increasingly concentrated in just one part of the day? Or will...

  • Energy storage and flexibility

    Seasonal frequency in the NEM: is VRE continuing to drive it?

    Frequency control remains a challenge for AEMO. New PFR (primary frequency response) provisions established in March 2020 will help AEMO to control frequency more efficiently. However, is it yet to be seen how market participants will be incentivised to participate in PFR market. In light of the rapid growth of...

  • Commercial and market outlook

    Is the NEM going off schedule?

    Is the NEM getting harder to control with rising variable renewable generation and distributed photovoltaic growth? AEMO’s balancing of scheduled supply is critical to ensure the system remains stable and wholesale prices work efficiently. This Chart of the week briefly examines if the NEM is “on schedule” to meet this...

  • Commercial and market outlook

    Round and round it goes, where the loop flow stops, nobody knows

    A by-product of how market boundaries are defined, loop flows are phenomena in electricity markets that manifest as flows going in one direction across parts of a network loop and goes the opposite way in other parts of the same network loop. Regardless of whether the market design is nodal...

  • Commercial and market outlook

    Residues of negative pricing

    Building on the last two Charts of the week, the rise in the frequency of negative wholesale energy prices in the NEM has impacts beyond the price of electricity. In this Chart of the week, we take a closer look at the impact of negative pricing on Inter-Regional Settlement Residue...

  • Commercial and market outlook

    Duck, duck, goose: bigger bellies and longer necks

    The last few months have been littered with record low demand in the system, highlighting that the ducks of the NEM continue to arch their backs lower and lower.  In this Chart of the week, we zoom out on the changes to scheduled demand and in the variability of the lowest and...

  • Energy storage and flexibility

    How deep is your love? A look at the depth of negative prices in South Australia

    The recent rise in the frequency of negative wholesale energy prices in the NEM has captured the attention of many market observers. A less-discussed aspect is how deep these negative prices run. How much additional demand could be added to the system during the negative-priced dispatch intervals before the prices...

  • Commercial and market outlook

    Mandated PFR tunes out regulation FCAS markets – What happens to batteries?

    The introduction of the mandatory Primary Frequency Response (PFR) in September 2020 improved frequency control of the NEM considerably, as highlighted by AEMO. In this Chart of the week, we look at NEM mainland FCAS regulation services dispatch before and after PFR implementation and the behaviour of the Hornsdale Power...

  • Commercial and market outlook

    Don’t look back in anger: are peaking assets exploiting 5-min price spikes?

    Building on our previous Chart of the week in October, where we reviewed the first couple of weeks of 5-minute settlement, we wanted to revisit this topic. Now two months in, we take another look and see how well the fastest responding assets in the NEM are capturing the best...

  • Commercial and market outlook

    FCAS not dead?

    A couple of months ago, AEMO released the final Inputs, Assumptions, and Scenarios Report (IASR) that contains the basis of all planning publications for the next few years.  The changing electricity consumption and generation pattern in the NEM is introducing new challenges to the operation of the energy system; minimum and...

  • Energy storage and flexibility

    Houston, we have a transmission problem

    Variable Renewable Energy is making tremendous strides towards the predominant energy source in the NEM, but its voracious capital intensity is over-running existing transmission capacity. Consumers are faced with a $3.5bn transmission build cost over the next 20 years, which to return value relies heavily on the emergence of grid...

  • Low carbon generation

    Industrial hydrogen demand predicted to grow to 37TWh by 2050

    This week’s ‘Chart of the week’ looks at recent research from Cornwall Insight’s insight paper ­- Industrial decarbonisation key for UK low carbon hydrogen – which shows demand for hydrogen by the industrial sector is predicted to grow significantly. In fact, Cornwall Insight research shows that by 2030 UK industry...

  • Commercial and market outlook

    The Victorian story of gas demand segments

    The Declared Wholesale Gas Market (DWGM) prices in Victoria have been on a rising trend since the start-up of LNG exports in 2015. Is this trend sustainable, given the Gas Statement of Opportunities (GSOO) forecasts an improved gas supply outlook with the new Port Kembla Gas Terminal (PKGT) expected to...

  • Energy storage and flexibility

    Why invest in batteries?

    Batteries currently participate in the wholesale arbitrage and FCAS services (contingency and regulation). However, a lack of clarity in policies and regulations specific to batteries create uncertainties for investors. The key challenge is to determine and capture all possible battery value streams (current and future services). Stacked value streams increase...

  • E-mobility and low carbon

    GB energy demand is predicted to rise 123% due to electrification

    It is safe to say that most of Great Britain’s (GB) heat and transport systems are from high emission sources that are incompatible with net zero. Decarbonising how we heat our homes and move from A to B is crucial to meeting our emissions targets. However, the biggest challenge associated...

  • Net zero corporates and ESG

    Chart of the week | A busy policy schedule for the coming year

    On 25 February, Cornwall Insight hosted its first Net Zero Business Forum of the year. The Net Zero Business Forum provides insight and analysis for businesses and public sector organisations looking to decarbonise their power, heat and transport needs. This online bi-monthly forum keeps members up to date with the...

  • Commercial and market outlook

    Chart of the week | Saying goodbye to 2020

    While lockdown may have been the most used word overall in 2020, in the energy sector net zero would certainly give it a run for its money. The raft of policy announcements, particularly in the last few weeks, will lead to a dramatic change in sector especially with moves to...

  • Low carbon generation

    Chart of the week | Colours of the Rainbow: Green hydrogen and FES 2020

    On 27 July, National Grid ESO released the 2020 issue of its Future Energy Scenarios (FES), exploring different pathways towards GB’s 2050 net zero goal. A new set of scenarios were developed for this year’s FES, with three of the four (Consumer Transformation, System Transformation and Leading the Way) meeting...

  • E-mobility and low carbon

    Chart of the week | Fleet Electrification to drive EV uptake

    The UK government has set measures to “effectively” ban the sale of all new internal combustion engine (ICE) vehicles from 2035 onwards to support the UK’s target to achieve net zero by 2050. It is expected that electric vehicles (EVs) will replace petrol and diesel as the primary mode of...

  • Commercial and market outlook

    Chart of the week | ES Catapult: shifting energy vectors in net zero

    In this week’s Chart of the week, we pick out a chart from ES Catapult which, in its report Innovating to Net Zero published earlier this month, presented two distinct pathways to a 2050 net energy system: centralised (Clockwork) and decentralised (Patchwork). In a Patchwork pathway, central government takes less of a...

  • Low carbon generation

    Pixie Chart of the week | ECITB highlight skill gaps in transition to net zero

    In this week’s Chart of the week, we look at the Engineering Construction Industry Training Board (ECITB) 2020 report. We explore potential training and skills gaps in technologies. Particularly, the ones that the industry expects to contribute to the UK net zero target.

  • Heat networks

    Pixie Chart of the week | UK buildings heat loss amongst worst in Europe

    Net zero carbon emissions by 2050 is a target which increasingly demands policymakers in the UK to address the issue of decarbonising heat. While much attention has been given to low-carbon heat generation through schemes such as the Renewable Heat Incentive, energy efficiency has been left on the sidelines for...

  • E-mobility and low carbon

    Pixie Chart of the week | UnBEVlievable: EV sales break records in 2019

    2019 was an exceptional year for electric vehicle (EV) sales, and particularly for battery electric vehicles (BEVs), which are fast becoming the choice powertrain within the plug-in vehicle category. BEV sales are higher than the National Grid Future Energy Scenarios’ (FES) Consumer Evolution and Steady Progression forecasts, shown in this...

  • Low carbon generation

    Chart of the week | Net zero power: more capacity, negative emissions

    This week's Chart of the Week looks at the Future Energy Scenarios (FES) for 2019, released by National Grid ESO today. It provides an updated outlook for a range of energy sector variables. Its four scenarios continue to be benchmarked against the 80% emissions reduction target on 1990 levels by...