Non-energy charges set to rise due to falling energy demand
“Eventually, these increases to non-energy charges could be passed down to the consumer bill at a time where some customers are facing financial difficulties due to COVID-19, as they are urged to stay at home."
Energy storage and flexibility
We are at the forefront of the energy storage and flexibility sector, helping customers successfully deploy battery storage, flexible power generation and demand side response. We provide strategy and business case development, revenue forecasting and commercial and regulatory investment due diligence.
Editor’s Pick | A marathon and a sprint? What next for onshore renewables?
Our own long-term power market model, utilised to produce our Benchmark Power Curve, incorporates net zero scenarios and shows that onshore wind capacity is likely needed to be 16.0GW to 22.0GW by 2030 to ensure we are on a pathway to meet net zero targets. For solar PV, the level...
Andrew leads Cornwall Insight’s GB consulting activity. He has a background in electricity networks having previously worked at Northern Powergrid and subsequently led Cornwall Insight’s work on network charging, most notably in relation to transmission network charges for generators. Andrew’s work with Cornwall Insight has included leading on several projects...
I can change – what’s wrong with the Capacity Market (and what we need to do to fix it)
The return of the Capacity Market (CM) after its legal hiatus in November 2019 was a relief to many owners and developers of generating capacity in GB. But I think it’s time to ask whether it’s really the best tool to reach net zero at lowest costs to consumers. The...
Editor’s Pick | The latest chapter in the ongoing network charging saga
The TCR is just one element of a package of major reforms which are underway. It is, in theory, complemented by the Network Access and Forward-Looking Charges SCR (the “Access SCR”). Both are looking at Distribution and Transmission Use of System (DUoS and TNUoS) charges and both have wide-ranging implications.
This factsheet summarises the key changes which will be implemented following Ofgem’s decision on the TCR, noting that Forward Looking Charges are also under review under the Network Access and Forward Looking Charges SCR.
Increasing levels of intermittent generation around the world are prompting debates for market participants and operators about how to optimise network design and ensure appropriate regulatory and commercial arrangements.
Special edition: The codes they are a changing | Code Governance Reform
Our Head of Training, Ed Reed, talks to our GB energy market industry code experts, Adam Boorman and Tom Edwards as they discuss the ongoing government and Ofgem led code governance reform programme. The industry codes set out the detailed commercial operation of the GB electricity and gas markets. Moreover,...
Constrained development: Scottish wind and the issues of network charging
Under subsidy schemes, there is also a pipeline of over 800MW of Remote Island Wind (RIW) projects looking to develop in the Scottish Isles under the Contracts for Difference (CfD) scheme.
Fully charged: Storage in the GB electricity sector
In our ninth podcast, the modelling and consultancy teams at Cornwall Insight discuss electricity storage in the GB electricity sector. Paul Anderson, Tom Edwards and Tom Palmer explore: what electricity storage is what role it plays the available revenue streams what is next for electricity storage in the GB power...
BSUoS task force report sets scene for Targeted Charging Review decision
The strong support for the BSUoS task force conclusions in the short consultation on its draft findings gives weight to the charge continuing to be treated as a cost recovery charge, rather than a forward-looking charge that users can reasonably respond to.
In this week’s Energy Perspective, we set out the main developments in the GB Capacity Market since the November 2018 ruling by the European Court of Justice that led to its suspension including, most recently, the European Commission’s confirmation it is to undertake a full investigation into the scheme.
Can Capacity Market costs be recovered via a ‘mirroring’ process in the Balancing and Settlement Code?
The deliberations could come to naught if it is found that the proposed approach does not meet BSC Objectives, which are framed around effective operation of the wholesale market and transmission system (and make no explicit reference to the CM), and more fundamentally if it is ruled that it is...
Owner of a lonely heart: Intraday continuous liquidity
When the I-SEM detailed design was released, many participants were concerned about potential liquidity issues in the Intraday Continuous (IDC) market. It would seem that their concerns have merit. As the first few weeks of I-SEM have certainly displayed low volumes in comparison to the Day-Ahead Market (DAM) and three...
Paradise Lost: The changing face of Embedded Benefits
Embedded benefits have risen in value as network charges, in the round, have increased for suppliers primarily due to the required investment in electricity networks to replace ageing assets
This week’s Energy Spectrum overview | 14 May 2018
In this week’s Energy Perspective, we consider the current options for appealing industry code changes, following the Competition and Markets Authority (CMA) issuing its final determination on the allocation of costs in relation to the EDF Energy/SSE appeal on an electricity transmission charging rule change (CMP261), relating to alleged breach...
Index of Domestic Energy Supply Costs | February 2018
While this trend of decreasing wholesale prices should continue into next month, the indices will begin to incorporate the third-party costs for the new charging year, where policy costs are likely to exert an upward force. On the other hand, the new regime of network charges looks likely to have...
Given the increasing competition in the FFR space and sharpening market price signals (both wholesale and imbalance), other strategies are evolving for standalone battery assets. Perhaps for those looking to get debt into their projects, they may consider an arbitrage option as a downside case.
Index of Domestic Energy Supply Costs | December 2017
In December 2017 the electricity index grew by 27 points to 1,517, a strong increase after the modest 3 point rise seen in November. It brings the electricity index to the second highest level since our records began, only falling behind December 2016 when the index peaked at 1,690 points....