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Categories
Low carbon generation
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Low carbon generation
Surge in value for waste-derived RGGOs
In August we published the findings from the July-22 edition of our 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. In this week's ‘Chart...
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Low carbon generation
Analysing earlier coal retirement in Victoria: What does it take for more emission reduction?
AEMO has recently published the 2022 Integrated System Plan (ISP), which provides an energy transition roadmap for the National Electricity Market (NEM). This ISP focuses on the “Step Change” scenario, which reflects strong action on climate change leading to a step change reduction of greenhouse gas emissions, based on the...
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Low carbon generation
Head to Head: CfD vs RESS
2022 has been busy for renewable developers in Great Britain and Ireland, with both the fourth allocation round of the Contracts for Difference (CfD) scheme and the second round of the Renewable Electricity Support Scheme (RESS) concluding this summer. In this week’s ‘Chart of the Week’, we compared the latest...
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Low carbon generation
BSUoS charges: What goes up…
Balancing Service Use of System (BSUoS) charges have continued to be the dominant driver of Third-Party Charge increases in recent months, with costs remaining elevated since last autumn. In this 'Chart of the week', we present a view of past monthly BSUoS charges and expectations for future costs on a...
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Low carbon generation
Waiting On the [Wind] to Change: A look-back on wind load factors in 2021-22
In our work across the renewables space, wind output and its impact on Renewables Obligation Certificate (ROC) issue has featured frequently in discussion with colleagues and market participants alike over the course of Compliance Period (CP) 20 (2021-22). In this 'Chart of the week', we examines wind load factor trends...
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Low carbon generation
CfD-accredited assets delay CfD start dates
The media have recently published stories regarding offshore windfarms with Contracts for Difference (CfD) agreements choosing to delay the start of their CfD terms in order to take advantage of high wholesale power prices and avoid having to pay additional revenue back to the Low Carbon Contracts Company (LCCC). This...
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Low carbon generation
Electric Vehicles vs reactive power controllability of inverter-based resources
Electric Vehicles (EVs) are quickly plugging into electricity distribution systems (EDS) around the world. Their take up introduces new challenges due to their random and high energy consumption. One of the important challenges associated with integrating EVs into EDS is voltage imbalance due to EV uptake in residential areas. This...
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Energy storage and flexibility
Chart of the week | The summer of our discontent?
Wholesale power and gas prices have surged significantly in the past year and have been highly volatile alongside rapidly unfolding geopolitical events. This summer, the overall direction of energy prices could move in a number of ways, dependent on further sanctions and counter-sanctions between Russia and the West, as well...
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Business supply and services
A GoO-ey end? Green power import certificates poised for removal
On 29 March, BEIS published a consultation seeking views on the removal of Feed in Tariff (FIT) and Contracts for Difference (CfD) scheme cost exemptions for green imported electricity and the recognition of EU Guarantees of Origin (GoOs) in GB altogether. Our 'Chart of the week' shows historic GoO imports...
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Home supply and services
Domestic Third Party Charges: 2022-23 outlook
The new energy price cap will come into effect from April, hitting a record high level which will see domestic consumers paying over 50% more per year in their energy bills. Although much of this increase is driven by rising wholesale prices, Third Party Charges (TPCs), reflecting non-commodity energy costs,...
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Low carbon generation
Lower energy prices? More than just hot air
The Victorian Government launched Australia’s first offshore wind targets as part of its transition towards a net-zero emission future. According to the target, 9GW of offshore wind will be installed by 2040, nearly quadrupling the total wind capacity in VIC. In this Chart of the week, we dive into the...
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Low carbon generation
Germinating: The growth of onshore wind and solar PV pipeline capacity since March 2020
The application window for Contract For Difference (CfD) Allocation Round Four (AR4) closed on 14 January. While we await news on the timetable and next steps for the auction, this 'Chart of the week' takes stock of how the pipeline for onshore wind and solar PV has developed since the...
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Low carbon generation
SA on cusp of 100% instantaneous renewables; gas unit directions remain
AEMO’s goal of handling 100% instantaneous renewable penetration by 2025 is a significant challenge and fitting, given the pace the NEM is moving to support increasingly higher levels of instantaneous (and increasingly asynchronous) renewables regularly. While this challenge may not be as pressing for all NEM regions, the need to...
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Energy storage and flexibility
T-4 Capacity Market Results: New build battery storage leads the way
On 22 February 2022, the T-4 Capacity Market (CM) auction for Delivery Year 2025-26 cleared at £30.59/kW/year. This was the highest ever clearing price in a T-4 GB CM auction and followed the T-1 auction for 2022-23, which cleared at the highest ever GB CM price of £75/kW on 15...
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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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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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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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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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Low carbon generation
Australian Chart of the week | No averages allowed: a look at recent NEM spot prices
2020 was a tame year for the National Electricity Market (NEM), with few contingency events of note (apart from the Q1 separation of Victoria (VIC) and South Australia (SA)) and wholesale spot prices trending to their lowest in over five years. In contrast, 2021 has taken an eventful turn with...
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Low carbon generation
Australian Chart of the week | Going for green: record level of wind generation in the NEM
In the spirit of the Australian Olympic team, instantaneous wind generation in the National Energy Market (NEM) reached new heights during a blustery end to July. Output hit a record 6,427MW at 8:05 pm on 25 July, after breaking 6,000MW for the first time just the day before. In this...
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Heat networks
Australian Chart of the week | Electric feel: can Victoria stay warm without natural gas?
The Victorian Government is currently consulting with community and industry on the Gas Substitution Roadmap, just one piece of a broader effort to meet emissions targets. It outlines several options for reducing emissions from natural gas, including gradual substitution with biomethane, hydrogen, or electricity. In this ‘Chart of the week’,...
