Five things we learnt from this week’s Energy Spectrum | 670

The government’s decision last week to legislate for a net zero carbon emissions target by 2050 is an epoch defining development for the energy sector. However, as we discuss in this week’s Energy Perspective, there is now greater expectation on the content of the upcoming White Paper to see if policy measures up to the new goal. We consider how the paper may unleash the power sector to achieve the target, concluding that a coherent vision, building coordinated action and dealing openly with the realities of uncertainty should be the starting points.

We discuss in our Policy section the news that the T-1 Capacity Market auction for delivery over the 2019-20 winter concluded at a clearing price of £0.77/kW, which is the lowest ever clearing price for a GB Capacity Auction. We will outline our thoughts on the drivers behind this in more detail in a future issue, but we suggest that the much-delayed running of this auction due to the State aid uncertainties has not helped.

The Policy section also includes the BEIS confirmation of the Smart Export Guarantee launching, which restores a framework for small generators to be paid for their power exports after the closing of the FiT regime for new capacity. However, by swapping a certain price and duration of support for market-driven values, the new framework is much less stable and, in our opinion, less likely to call forward new capacity.

We also look more closely at the issuing by the Energy Data Taskforce of its A Strategy for a Modern Digitalised Energy report. The proposals set out in the document represent a huge cultural shift for the sector when it comes to opening up system data as opposed to personal data, which is covered by GDPR.

The Elexon-led Design Working Group set out that a phased approach is the best way to transition to market-wide half-hourly settlement (HHS) on 7 June, describing how the industry can move towards the DWG’s preferred Target Operating Model (TOM), currently being considered by Ofgem. We discuss the plans in more detail in our Regulation section, stating our belief that it is one of the most important documents to come out of the HHS project, as it explains how the TOM will be put into practice. The fact that HHS depends on other workstreams, however, means it is still some way off.

Related thinking

E-mobility and low carbon

Is Europe’s EV uptake stalling? EV Country Attractiveness Index findings

In the first quarter of 2024, battery electric vehicle (BEV) sales and public charge-point installations have continued to grow across Europe. The new financial year has also seen many countries implement new subsidies to spur further growth. Amid this, conversations continue around the influence of cheap Chinese imports across European...

Commercial and market outlook

What to look out for in 2024

Cornwall Insight experts provide their predictions for the year ahead in this handy infographic. We have collated some predictions from across our knowledge base to provide a quick snapshot of what to look out for in the GB energy market in 2024. The key highlights include the global discussion on...

E-mobility and low carbon

Paving the way: EV Country Attractiveness Index findings

Following the previous iteration of the EVCA Index, published in September 2023, the EV market has continued to grow across Europe. From October 2022 to October 2023, the EU, Norway, and the UK have seen a combined 29% year-on-year increase in battery electric vehicle (BEV) sales. Cornwall Insight have partnered...

E-mobility and low carbon

Driving growth: EV Country Attractiveness Index findings

Since the previous iteration of the EVCA Index, published in June 2023, there have been some changes to the electric vehicle (EV) landscape. The EV market has continued to grow with battery electric vehicle (BEVs) sales increasing across Europe. Cornwall Insight have partnered with law firm Shoosmiths to create the...

Energy storage and flexibility

Off-peak electricity use and home generation could cut billions off energy costs

New analysis from Cornwall Insight and Smart Energy GB has revealed the substantial cost-saving potential of household flexible electricity initiatives such as time-of-use tariffs, smart meters, solar PV, and batteries. The has data revealed national wholesale and system electricity costs could be cut by an annual £4.6bn in 2030 and...

Regulation and policy

Capacity Market: Rule changes for upcoming auctions

The latest round of Capacity Market auctions is underway following the publication of the auction parameters on 18 July, with the prequalification window subsequently opening on 26 July. In this blog, we explore some of the changes made to the rules and regulations of the scheme ahead of this year’s...

Announcement

2022/23 Australian energy insights report

Analytics on key current developments in the Australian energy industry Cornwall Insight Australia has released its latest compilation of Australian energy insights, charts, and analyses. The report includes the topics of energy storage and flexibility, generation (all technologies), power prices, low carbon generation, FCAS, policy and regulation, electric vehicles, and...

E-mobility and low carbon

Charging forward: EV Country Attractiveness Index Findings

Since the previous iteration of the EVCA Index, published in March 2023, there have been some changes to the EV landscape. New countries have emerged as leaders in battery electric vehicle (BEV) growth while others have continued to develop their charging networks and maintain economic strength at a time when...