Five things we learnt from Energy Spectrum | 660

Despite being championed regularly by the government during the mid-2020s, more recently, the embryonic shale gas industry in the UK has had to make its own case. Support for that case could be seen in recent reports by UK Onshore Oil and Gas and others which demonstrate the potential for developing indigenous gas production in GB (in the case of the former), as well as highlight a growing LNG sector globally. Against this context, this week’s Energy Perspective considers the prospects for building a new onshore GB gas production base.

Government policy has become gradually more sympathetic to intensive industry as its electricity prices have risen against neighbouring countries. But cost reliefs and support remain limited compared to several of those markets. Against this background – as we suggest in this week’s Policy section – the government’s new £315mn Industrial Energy Transformation Fund is an important initiative.

Although the Renewables Obligation is now closed to new capacity, the threat of mutualisation means the scheme is now trickier than ever for suppliers to manage. In our Regulation section, we look more closely at Ofgem’s Renewables Obligation Annual Report 2017-18, published 21 March, finding that lessons from setting the target over recent years seem to have been learned, with headroom delivering good prices for generators.

Our Industry Structure section takes a look at National Grid’s Summer Outlook 2019, the latest iteration of its annual report, published on 26 March. It demonstrates that current indications show a stable summer forecast, with ample gas supplies and the ability to meet both gas and power demand.

In November 2018, the final changes through BSC modification P305 were implemented. In this week’s Nutwood we consider recent developments including last weekend’s record sequence of negative prices.

Related thinking

Low carbon generation

3G meets in-person| Lots discussed in our low carbon user group

Last week I took a trip to sunny central London to attend Cornwall Insight’s Green Generators Group (3G), which is the user group for our low carbon generation service. In what felt like a novelty after a two-year hiatus of face-to-face forums, I was joined by my colleagues Dan Starman...

Low carbon generation

CfD Auction Secures Greatest Amount Of Renewable Capacity To Date

Yesterday, the government released the results of the fourth round of the Contracts for Difference (CfD) scheme, securing almost 11GW of renewable capacity across 93 projects, nearly double the 5.8GW awarded in Allocation Round 3 in 2019. The greatest capacity – at 7.0GW - has been secured from new offshore wind projects,...

Commercial and market outlook

Ofgem outlines thinking on protecting credit balances and RO payments

This article is an extract from our Energy Spectrum publication issued on Monday 25 April. If you are interested in receiving critical policy, regulatory, market and transactional developments across the energy sector, and would like a free full sample of Energy Spectrum, please request a copy here. You only need...

Home supply and services

“Green” tariffs in the spotlight as BEIS commences review

With the announcement on 16 August of a call for evidence on Designing a Framework for Transparency of Carbon Content in Energy Products, consultant Josephine Lord looks at the issues being considered and what the future may hold for so-called “green” tariffs. The call for evidence is the first step...

Regulation and policy

Calm before the storm? 2021 energy supplier compliance developments

The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

Energy storage and flexibility

How nuclear energy can help the UK reach its net zero goals

This article was originally written in Energy Spectrum on 21 March 2021. To find out more about a subscription to Energy Spectrum, please contact Nick on There are several challenges to reaching net zero, where its proponents believe nuclear could add value. Some of tomorrow’s main issues concern: How to provide low...


Introducing Energy Spectrum Europe

Cornwall Insight is pleased to announce the launch of Energy Spectrum Europe. This new addition to the Energy Spectrum stable will provide the authoritative, independent insight and analysis of energy markets for which its peers covering Great Britain, Ireland and Australia are rightly renowned. Every month Energy Spectrum Europe will...

Commercial and market outlook

A look back at 2020

As we take our first steps into 2021, we look back at the biggest developments in the UK energy markets in 2020, setting us up for the significant year ahead. As 2019 turned into 2020, we were still waiting for the Energy White Paper (EWP), a document which had been...