Smart electrically-driven heating is a “valuable field in which to invest”, Delta-EE says, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. Considering that European utilities have lost over €100 billion in value since 2008, Delta-EE industry recommends “stakeholders should take advantage of digitalisation” and try to extract value from the electrification of heat.
UK Power Reserve said it is “on track to deliver its 2014 capacity market obligations” with nine power stations built so far in 2017 and another nine set for completion by the end of the year. Once all 18 are commissioned and fully operational, UKPR will contribute 364MW of fast-ramp, flexible gas generation to the UK power grid.
Decentralized power provider UK Power Reserve has called on policy makers to strengthen the role of the Connection and Use of System Code (CUSC) panel as an independent body. In light of proposed modifications to the CMP285 CUSC governance reform, UKPR has spoken out against what it perceives to be an “overwhelming dominance of the Big 6 in [Britain’s] industry governance.”
National Grid projections show that growing use of electric vehicles in the UK could increase peak power demand by 3.5 GW by 2030 and 18 GW by 2050. Today, UK peak power demand is approximately 60 GW. Under the “Consumer Power Scenario,” National Grid anticipates electric vehicle (EV) sales to account for more than 90% of all cars by 2050.
Though Centrica CEO Ian Conn told the BBC this morning that closure of its 3.4 Bcm Rough gas storage facility will not destabilize Britain’s gas supply – given the possibility to import LNG and source gas from Norway and the EU through several interconnectors – some analysts see it differently. Commenting on Centrica’s move, Wood Mackenzie analyst Graham Freedman said the decision not reopen Rough storage comes as “no surprise” and makes “good commercial sense” for Centrica. However, he believes the implications on the UK's future security of gas supply “will no doubt lead to a UK Government review of its position, particularly in light of current Brexit negotiations.”
June 7 – Czech EPH, a Czech investor in coal mining, gas and electricity assets, filed to the UK regulator for a permit to replace the 53-year old Eggborough coal power station with a 2,500 MW gas-fired unit on the same site. The application is now subject to a 28-day vetting process through the UK's Planning Inspectorate. Eggborough Power, owned by EPH, needs to keep its 2.5 GW coal power asset operational at least until March 2018, after having won a capacity contract to provide back-up power.
The Institute of Directors (IoD), the UK’s longest-running organisation for professional leaders, has called on whoever forms the next Government to come up with a “transparent alternative” to energy price caps.
“Price cap or freezes don’t help,” the IoD said, suggesting Whitehall should rather create a default tariff structure instead.
Risk of power cuts in Britain seems unheard of for most electricity customers. But if coal power capacity comes off the grid more quickly than in 7 to 10 years’ time, subsidy-free renewables expand, and less interconnectors get built in the wake of Brexit – fast-ramping gas generator sets are best placed to fill the supply gap, Phil Grant partner at Baringa consultancy told industry stakeholders at the Finish embassy in London.
Italy’s state-owned utility Enel has bought the Tynemouth stand-alone battery storage project in the North East of England from Element Power for approximately 20 million euros. The construction-ready project is an “investment opportunity,” according to Enel said, as it is supported by a 4-year Enhanced Frequency Response (EFR) contract to provide grid balancing services.
Ofgem, the UK energy regulator, is reviewing incentive schemes for small gas, diesel-fired power plants – a withdrawal of subsidies could make developers scrap 2,000 MW of planned capacity. Operators of larger combined-cycle gas power plants argue, however, that payments to distributed gensets have led to a ‘market distortion’ which discourages investments in CCGTs.