We are pleased to present Aurora’s GB monthly wholesale, balancing and asset value report.
Highlights from December include:
- Over the past month, both wholesale and balancing market prices increased to their highest levels observed over the past year. Relative to November, baseload prices increased by 33% to £54/MWh, while average short and long prices increased by 33% (to £82.6/MWh) and 30% (to £21.3/MWh) respectively
- In addition to rising demand from colder weather these high prices were driven by significant fluctuations in wind output. December also saw the highest amount of CCGT generation in over a year (at 7.2 TWh), resulting in a 24% rise in carbon emissions relative to November
- On 3rd December, National Grid issued a Capacity Market Notice (which was cancelled shortly after) as wind generation decreased – this period saw system prices reaching £160/MWh. The half hourly system price hit its highest level on 28th December at £850/MWh as a cold spell was met by relatively muted wind generation (10% of the total generation mix)
- Due to the increase in both wholesale and balancing prices, both 1h/2h duration batteries saw significant increases in their margins. The total margins increased by 48% to £6.9k/MW/month for the 1h duration battery and 23% to £7.9k/MW/month for the 2h duration battery compared to November
- Reciprocating engine margins also saw a significant increase as both wholesale and balancing system captured prices rose by 20%. Alongside an increase in running hours by 32% due to low wind output, recips. saw a rise in total margins of 75% to £3.6k/MW/month
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