Five things we learnt from Energy Spectrum | 664

BEIS’s Updated Energy and Emissions Projections 2018, published in April, showed that the UK remains off target to meet its fourth and fifth five-yearly carbon budgets. In this week’s Energy Perspective, we look at the projections in more detail, concluding that while the pressure on the government to rachet up its policies has been increasing ever since the policies set out in the Clean Growth Strategy revealed the shortfall against the fourth and fifth budgets, the net effect reflected in the latest projections is that low-carbon policies will need to be even more ambitious than had been thought. Particularly as the emissions gap is set to worsen from 2033 when the sixth carbon budget begins.

The Committee on Climate Change’s landmark report, Net Zero: The UK’s Contribution to Stopping Global Warming, sets out recommendations to government as to how to achieve net zero greenhouse gas emissions by 2050. In our Policy section this week we look more closely at the key recommendations in the report, concluding that it is impressive in its scope, and only serves to put more pressure on the government across all areas of emissions reductions.

Ofgem presents a credible set of reforms in its consultation launched as part of its five-year review of the Capacity Market rules. We look at the consultation in our Regulation sector, suggesting that the CM Advisory Group should help provide some much-needed coordination before change proposals go to Ofgem, but issues around participation and resourcing will need to be considered further.

In our Industry Structure section, we detail Iberdrola’s first quarter results finding that, for the slimmed down Scottish Power, there is a notable contrast from a retail business hit by competition and price caps compared with the networks and renewables businesses, where profits are on the rise. 

We have two Nutwood features this week. The first, from Cornwall Insight Associate Peter Atherton, takes a look at Utility Warehouse’s avoiding – to date – of the challenging conditions experienced by others in the retail market. Our second article introduces a new Cornwall Insight service, the Benchmark Power Curve, which provides a comprehensive market and asset-level power price modelling service that delivers long-term price forecasts.

Related thinking

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...

Home supply and services

Addressing consumer harms in the non-domestic market

In recent months, Ofgem has shone a light on areas across both the domestic and non-domestic market where suppliers could improve their practices for customers and go beyond what they are obligated to do in the licence conditions. In a time of significant and extended volatility, the regulator has brought...

Commercial and market outlook

NEM power price trends

This report provides captured power price trends for the Queensland energy market (neutral case in line with AEMO's ISP Progressive Change scenario) from 2022 up to 2041 using outputs from Cornwall Insight Australia’s latest NEM Benchmark Power Curve (BPC), published on 18 December 2022. With additional commentary on the key...

Energy storage and flexibility

Waiting to connect: the problems and solutions for network connection queues

The number of grid applications has risen significantly in recent years, resulting in increased pressure on the electricity networks to facilitate new connections. In its Energy Security Strategy, the UK government set out ambitions for 95% of electricity to be sourced from low carbon generation by 2030, and for the...

Energy Market Design

Are prices going to rise in Contracts for Difference Allocation Round 5?

A number of factors may be about to put an end to the trend for falling energy prices in the Contracts For Difference (CfD) scheme. The CfD scheme has provided strong subsidy support whilst also providing consumers robust levels of protection. High investor confidence and steady reductions in capital costs...

Business supply and services

What happened in 2022 in the energy market?

The GB energy market never stands still and 2022 was no different. In this infographic, we look back at some key happenings from the past year in different segments of the GB energy market.  Click the image below to see our snapshot.

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...

Business supply and services

Terms and conditions apply: Ofgem looking further into business market

As turbulence has continued in the wholesale energy markets throughout 2022, including through the crucial October contracting round for the business supply market, non-domestic energy suppliers have come under considerable pressure. Firstly, they have had to attempt to pass through extraordinary price increases to customers in recent months, particularly if...