Chart of the week
Our complimentary Charts of the week analyse the latest news and updates in the energy industry. The articles offer a visual way of understanding complex issues and are complemented by our expert’s analysis.
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Categories
Latest Charts of the week
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Low carbon generation
Capacity Market prequalification: Lack of nuclear capacity opens opportunity for new build capacity
In its role as the EMR Delivery Body, National Grid ESO published the prequalification registers for the upcoming Capacity Market auctions, on 23 November. The registers detail the assets that have either prequalified, conditionally prequalified or been rejected ahead of the T-1 and T-4 auctions for delivery in 2022-23 and...
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Low carbon generation
Embedded generators and the future of TNUoS charging
Electricity network charges are currently undergoing a significant period of reform to ensure that charging methodologies are fit for purpose in the transitioning energy market. Transmission Network Use of System (TNUoS) generator charges are a particular topic of debate at present, with locational tariffs raising concern by some parties and...
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Low carbon generation
Industrial hydrogen demand predicted to grow to 37TWh by 2050
This week’s ‘Chart of the week’ looks at recent research from Cornwall Insight’s insight paper - Industrial decarbonisation key for UK low carbon hydrogen – which shows demand for hydrogen by the industrial sector is predicted to grow significantly. In fact, Cornwall Insight research shows that by 2030 UK industry...
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Low carbon generation
Growing pains – (nearly) six months of the UK ETS
We are fast approaching six months since the commencement of the UK Emissions Trading Scheme (UK ETS), which launched on 19 May this year. In this 'Chart of the week', we examine the trajectory of the GB carbon market to date and discuss potential upcoming developments.
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E-mobility and low carbon
One in five: Electric vehicle registrations
Last week the government published its Net Zero Strategy, detailing plans to introduce a zero-emission vehicle mandate alongside targeted plug-in vehicle grants. In assessing electric vehicle (EV) uptake, we explore the latest vehicle registration data from the Society of Motor Manufacturers and Traders (SMMT), published at the start of October....
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Home supply and services
Over a third of energy suppliers have left the market
The domestic supplier market is facing a turbulent time with high wholesale prices causing distress and a series of supplier exits in the energy sector. This week's 'Chart of the week' examines these suppliers exits and their effect on the domestic market.
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Energy storage and flexibility
Renewables PPA market see increased capacity amid more long-term deals being signed, but challenges remain
In this 'Chart of the week', we outline the latest research from our Renewable PPA Market Share report. Through this report and our supplementary Renewable PPA Market Tracker, we track and record details of renewable Power Purchase Agreements (PPA) and the amount of renewable PPA capacity held by offtakers in...
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Home supply and services
Supplier exits predicted to trigger Renewable Obligation mutualisation
Over the past few weeks, the energy market has been under the microscope as high wholesale prices and a wave of suppliers exiting the market has hit the headlines. Amid challenging wholesale market conditions for suppliers, they are now also facing the compliance deadlines for 2020-21 of the Renewables Obligation...
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Home supply and services
Domestic switching falls as the savings gap is squeezed
With day-ahead gas reaching an all-time high of 187.50p/th as of 15 September, it has been a record-breaking summer for wholesale energy prices. This Chart of the Week explores the impact these high prices are having on domestic tariffs and consumer switching behaviour.
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Business supply and services
SMEs (Small and medium businesses) experience record breaking prices
In Q321 the average SME gas contract was priced at the highest value since we started tracking propositions in 2012 (4.98p/th for 1-year acquisition contracts that assume a 25MWh annual consumption). Our Pricing in the SME Gas/Power Markets reports also shows SME electricity contracts seeing record highs, priced at 19.95p/kWh...
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Low carbon generation
CfD Allocation Round 4: how much capacity might we expect?
On 13 September, BEIS published the draft budget notice and draft Allocation Framework for Allocation Round 4 (AR4) of the Contracts for Difference (CfD) scheme, scheduled to open in December 2021. BEIS set out a total draft budget of £265mn (in 2011-12 money) for AR4, meaning that total spend in...
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Low carbon generation
A podium finish: ROC banking in CP19
The Renewables Obligation (RO) Compliance Period (CP) 19 (2020-21) has been unusual in the scheme’s history in light of the impact of the COVID-19 pandemic. As we are in the so-called “compliance season” for CP19, we reflect on the last year and the importance that Renewable Obligation Certificates (ROC) “banking”...
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Power and gas networks
The rise of wholesale gas prices … the saga
It is certainly not a standard summer season for gas prices. Normally with demand for gas typically lower, we should see prices at the lowest levels of the calendar year. However, Summer 2021 gas prices are currently seeing bullish momentum with price points that we would expect to see in winter. In this ‘Chart of...
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E-mobility and low carbon
GB energy demand is predicted to rise 123% due to electrification
It is safe to say that most of Great Britain’s (GB) heat and transport systems are from high emission sources that are incompatible with net zero. Decarbonising how we heat our homes and move from A to B is crucial to meeting our emissions targets. However, the biggest challenge associated...
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Home supply and services
Green certificate prices continue to rise amid BEIS proposals
On 16 August, BEIS opened the consultation ‘Designing a framework for transparency of carbon content in energy products’. This call for evidence invites views on whether the use of Renewable Energy Guarantees of Origin (REGO) certificates for annualised renewable energy matching inhibits transparency for consumers, and how the REGO framework could...
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E-mobility and low carbon
Postcode winners and losers: charging infrastructure provision
Last month the Competition and Markets Authority (CMA) published its final report on its market study into electric vehicle (EV) charging in the UK. It raised concerns about charge point deployment at motorways, remote locations and on-street locations, stating that access to suitable charging can be a “postcode lottery” and...
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Home supply and services
Fail to prepare, prepare to fail – domestic switching rate dips
The Energy Retail Market Strategy for the 2020s places consumer engagement as a key focus in the short term through to the late 2020s. To increase competition and engagement, current proposals include the introduction of an opt-in switching scheme and trialling opt-out switching to ‘nudge’ consumers and suppliers towards more...
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Energy storage and flexibility
Grid works hard for the money: an annual look back at BSUoS
This weeks Chart of the Week takes a look at the costs incurred from balancing the electricity system over the last 12 months. The cost of all the actions and day-to-day operation of the electricity system are recovered through Balancing Services Use of System (BSUoS) charges. This changes in each...
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Business supply and services
SME’s interest in renewables driven by corporates
Despite the challenging year for businesses, we recorded growing interest in renewable electricity amongst businesses and Third Party Intermediaries (TPIs) according to our TPI Satisfaction Survey for 2020. This has been a focus for Industrial and Commercial's (I&Cs) over the last two years driven by corporate social responsibility goals, particularly...
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E-mobility and low carbon
The best is yet to come: Electric Vehicles surpass 2021 diesel sales
The Transport Decarbonisation Plan published yesterday sets out new targets to cut emissions from the sea, roads and railways, joining an earlier commitment to phase out polluting cars and vans by 2035. In assessing the progress so far, we take a look at data released last week from the Society of Motor...
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Home supply and services
900,000 domestic customers impacted by SoLR over last two years
Across 2020 and 2019, 887,000 domestic customers were supplied by a company which exited the market via the Supplier of Last Resort mechanism (SoLR). On average, this is around 1.7% of the market per year. In 2018, 551,000 domestic customers were supplied by a company which entered the Supplier of...
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Low carbon generation
The outlook for private wire business models
Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...
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Low carbon generation
Price trends for Renewables Gas Guarantees of Origins
In May 2021 we published the findings from our latest quarterly Green Certificates Survey. The survey is designed to provide greater market transparency for Renewable Energy Guarantees of Origin (REGO), Continental Guarantees of Origin (GoOs) and Renewable Gas Guarantees of Origin (RGGO) certificate markets. It provides aggregated views on certificate...
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Regulation and policy
Taking charge: the MHHS implementation levy
On 10 June the BSC Panel approved the Market-wide Half Hourly Settlement (MHHS) Implementation Charge for 2021-22. The new charge, introduced under modification P413 Market-wide Half Hourly Settlement Programme Manager, will cover Elexon’s programme management costs for MHHS implementation. It will be levied on suppliers on a monthly basis, based...
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Home supply and services
Chart of the week | Default tariff cap set to rise by at least £100 for coming winter
The default tariff price cap for a typical dual fuel direct debit customer looks set to increase by over £100 for the Winter 2021-22 period, according to an initial assessment from Cornwall Insight’s bi-annual tariff cap predictor. The latest forecast for the cap indicates that it will increase to around...
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Home supply and services
Chart of the week | Green hair, green branches, green skin, green tariffs?
In this 'Chart of the week', we look at how prevalent green supply has become, unpick some of the drivers behind this, and look at the challenges now facing consumers, suppliers and policy makers confronted by a sea of green. Over recent years, we estimate the percentage of households with...
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Commercial and market outlook
Chart of the week | Green recovery in Italy?
Issue 229 of ‘Chart of the week’ showcases Italian prime minister Mario Draghi’s economic recovery plan which was presented to the country’s parliament. The appointment of Mario Draghi, former head of the European Central Bank, as prime minister on 13 February has provided the country with a unique opportunity to...
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Commercial and market outlook
Chart of the week | The price is right? UK ETS market opens
In issue 225 of the 'Chart of the week', we considered the potential scenarios for UK carbon prices as we transitioned to the new UK Emissions Trading System (ETS), noting the role of market tools, policy, and recent EU ETS pricing trends in determining UK prices. Following the launch of the first...
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E-mobility and low carbon
Chart of the week | The only way is up: Electric Vehicle registrations
Data released last week from the Society of Motor Manufacturers and Traders Ltd (SMMT) showed plug-in hybrid (PHEV) sales unusually higher than Battery Electric Vehicle (BEV) registrations in April. PHEVs took a 6.8% share of all new car registrations compared to 6.5% for BEVs. In this 'Chart of the week',...
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Commercial and market outlook
Chart of the week | Getting the balance right – a new approach to policy costs?
A new report from research consultancy Public First has argued that the government should move the costs of energy policy from being heavily on electricity bills onto government expenditure. In this 'Chart of the week', we look at the four models for rebalancing put forward in the report. Options for...