Five things we learnt from Energy Spectrum | 658

As the details of the three domestic and small business energy efficiency measures announced in the Chancellor’s Spring Statement – a new Future Homes Standard, a commitment to “green the grid” and a proposed scheme for SMEs – are firmed up, we believe that innovation, affordability and diversity in setting delivery channels will prove essential to reducing carbon emissions from premises. This is the conclusion of this week’s Energy Perspective, in which we look in more detail at the initiatives outlined by the Chancellor and explain why they are both important and timely.

The proposed technical amendments to the capacity market set out by BEIS in its 7 March consultation are, in part, a direct response to Tempus Energy’s recent state aid challenge. They also demonstrate learnings from the department’s ongoing five-year review, as we discuss in our Policy section. The consultation, which includes proposals around a replacement T-3 auction to be held in early 2020 and the introduction of generating technology classes for solar and wind closes on 4 April.

With the incentives framework now in its second year, National Grid Electricity System Operator (ESO) is expected to show how its activities make progress in order to build on and go beyond its existing commitments in its forward plan. In this issue’s Regulation section, we look in more detail at an open letter from Ofgem urging the ESO to present a clearer picture surmising that the regulator clearly still needs some convincing on proposed performance metrics.

The publication of the recent industry update regarding the Firm Frequency Response (FFR) market is welcome in providing current and future FFR participants with greater clarity on many of the major developments. In our Industry Structure section, we look at the update in more detail.

In this issue’s Nutwood section Cornwall Insight Associate Peter Atherton analyses the recent financial results published by innogy, asking what they can tell us about the current state of the GB supply market.

Related thinking

Announcement

Cornwall Insight refreshes its look for a net zero future

Cornwall Insight is updating its look continuing in our commitment to innovation, clarity, and excellence in the energy sector. As we support our customers in this ever-evolving energy landscape, the refreshed brand will make our offerings easier to understand, clearer to navigate, and more user-friendly, ensuring everybody gets the most...

Energy storage and flexibility

Waiting to connect: the problems and solutions for network connection queues (Part 2)

Network connection queues continue to be a notable topic of interest as many generators face significant delays to project development – an issue that is directly conflicting with net zero ambitions and recent focuses on strengthening domestic energy supplies. In Part 1 of our two-part series on connection queues we...

E-mobility and low carbon

2022’s most exciting ‘Charts of the Week’

Some of our team have looked back throughout 2022 and picked their most exciting ‘Chart of the Week’.​Their choices include exploring green tariffs, wholesale gas prices, CfD allocation round 4 and the MHHS Implementation Levy.  It’s My Birthday – Two years of Dynamic Containment Picked by Tom Faulkner, Head of...

Energy storage and flexibility

Balancing Reserve: ESO proposes new regulating reserve service

In recent months National Grid ESO has been developing a new reserve service to improve the management of the system and enable the grid to accommodate zero carbon operation of the electricity system by 2025. On 28 September the ESO first announced at their Autumn 2022 Markets Forum, a proposal...

Low carbon generation

UKERC issues response to REMA consultation

On 3 November, UK Energy Research Centre (UKERC) published a response to BEIS’ Review of Electricity Market Arrangement (REMA) consultation. Our experts discuss what the response addresses and how some of the proposals would place new responsibilities on retail energy suppliers. Read the full blog on our What is REMA portal, which...

Business supply and services

Improvements for microbusinesses in the market begin to take effect

Before energy prices began to really soar, in March this year we saw the final package of reforms following the Microbusiness Strategic Review from Ofgem. The outcome of the review was to introduce changes to supplier licence conditions that would improve how microbusinesses are treated in the market. The new...

Regulation and policy

Energy Price Guarantee to end in April

I was not surprised by the announcement from the Chancellor today (17/10) regarding the shortened time period in which the domestic Energy Price Guarantee (EPG) will apply, for all the reasons discussed in our report -  Energy Price Guarantee - Counting the Cost - and my accompanying blog. Our report...

Regulation and policy

Government to consult on the introduction of Cost-Plus-Revenue Limit

The government issued its Energy Prices Bill on 12 October. The bill will put in law a number of the already-announced mechanisms that will be used to support households and businesses this winter including the Energy Price Guarantee and the Energy Bill Relief Scheme. Also announced alongside this is the...