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Solar and Wind - Aurora Energy Research

This report is from our subscriber webinar held on 22nd July 2020, and is now available to download on EOS.

Highlights of the report include:

  • Key recent policy updates cover carbon pricing, with a standalone UK ETS scheme looking like the most likely option post-Brexit; removal of barriers to entry for storage through import charges and planning regime changes; discontinuation of Firm Fast Reserve tenders and ongoing suspension of STOR tenders. Network charging reviews are ongoing, with initial conclusions expected later in 2020
  • Recent months have seen multiple gas recip and battery portfolios put up for sale, various agreements on route-to-market provision and significant new project announcements, including Highview’s 250 MWh liquid air energy storage plant. In addition, UKPN’s April 2020 local flexibility tender awarded 123 MW of capacity at a total cost of £14m
  • COVID-19 has caused drops in power demand which have resulted in record levels of renewable penetration on the GB grid; National Grid have been forced to take large volumes of balancing actions and introduce new emergency services in order to maintain grid stability. This has come at significant cost, with balancing costs up nearly £100m in some months relative to 2019
  • Stability and other system operability issues are being addressed through various means ahead of National Grid’s ambition to be able to run a zero-carbon grid by 2025. Phase 2 of the Stability Pathfinder will procure short-circuit level in Scotland; trials are also underway for provision of upwards and downwards reserve from batteries
  • Capacity Market targets for the 2020 auctions have been announced, with 41.2 GW for the T-4 for 2024/25 delivery and 0.4 GW set aside for the T-1 in that delivery year. Given the exit of Calon’s CCGTs in the last auction, as well as the increases in interconnector de-ratings, the auction is expected to be tight. The T-1 for 2021/22 has a target of only 0.4 GW

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