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

Low carbon generation

Japan Power Market Outlook – Q2 2024

The Japan Benchmark Power Curve is a comprehensive power price modelling service, providing market and technology-specific forecasts in partnership with Shulman Advisory. It delivers long-term 30-year price forecasts, informed by significant market, policy, and regulatory expertise, along with direct access to our experts. This summary report provides an overview of trends for the Japan Power...

Home supply and services

Reforming Energy Bills: What’s on the Table?

There has been much speculation in the energy industry over what reforms to household energy bills could potentially be introduced, particularly with Ofgem due to announce its Q3 (July – September) 2024 Default Tariff Cap figures on Friday (24th). With so many areas under review, we’ve put together an overview...

Commercial and market outlook

The latest quarterly updates from our Benchmark Power Curves

Long-term, technology-specific power price forecasts are crucial for making sound investment decisions. But with the rapidly changing market landscape, obtaining credible, comprehensive insights can be a challenge. That's where Cornwall Insight's Benchmark Power Curves step in to deliver the forecasting expertise you need.  Backed by our deep market knowledge and...

Low carbon generation

Latest developments in the TPI space

We recently published our 2023 Annual TPI report which provides an independent review and analysis of the market for TPIs, and the services provided by them. The report also looks at the current challenges and opportunities for TPIs, such as regulatory changes, competition with suppliers, and diversification of services. 2023...

Low carbon generation

GB Power Market Outlook to 2030 Q4 2023

This report provides an annual overview of trends for the GB Power Market out to 2030 using outputs from Cornwall Insight’s latest Benchmark Power Curve (BPC) for the British Electricity Market covering England, Scotland and Wales. This publication is based on comprehensive market and asset-level power price modelling that delivers...

Regulation and policy

What’s going on with REGOs?

Renewable Energy Guarantees of Origin, more commonly referred to as REGOs, are certificates issued to accredited renewable generators for every MWh of electricity they produce over a year period. The initial intentions of these certificates were to provide suppliers a means to prove the level of renewable generation they received...

Home supply and services

Ofgem strives to improve consumer experiences across both the domestic and non-domestic sectors

Over the last week, a number of anticipated publications were issued by Ofgem that hold the potential to make a significant change to the requirements on both domestic and non-domestic suppliers. The findings of Ofgem’s non-domestic market review were revealed, alongside a policy consultation on the options available to address...

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...