asset investment

The relevance of a near zero UK capacity price | 17 Jun, 2019

The latest T-1 UK capacity auction cleared at 0.77 £/kW on Wed last week. That is 87% lower than the last T-1 clearing price (at 6 £/MWh).  77 penc ...

Decarbonising European gas: 3 pathways | 27 May, 2019

The origins of the European gas market go back to the discovery of large reserves of natural gas, firstly the giant onshore Dutch Groningen field (195 ...

Headwinds for UK gas engine margins | 29 Apr, 2019

When the UK capacity market was introduced in 2014, large grid connected CCGTs were anticipated to be the primary provider of new capacity.  Step for ...

Challenging three battery investment ‘myths’ | 15 Apr, 2019

‘Battery storage flexibility is a key building block of a decarbonised power sector.’ This statement is not a myth.  In fact it is almost a tr ...

A new wave of LNG supply is building | 18 Mar, 2019

European and Asian spot gas prices have halved across the last six months. European hub prices are currently testing the 5.0 $/mmbtu level, down from ...

Power price uncertainty: a UK case study | 25 Feb, 2019

Baseload power prices are becoming irrelevant.  This is down to the simple fact that a diminishing number of power assets run to a baseload profile. ...

Confronting power market uncertainty | 11 Feb, 2019

Everyone is familiar with the Base, High & Low scenario approach to power market analysis.  This is rooted in common sense. What is our best gues ...

Variable cost a key differentiator for storage | 28 Jan, 2019

Like cars, gas storage assets come in a range of sizes and speeds.  Any conversation comparing the relative merits of different storage assets tends ...

5 energy market surprises for 2019 | 07 Jan, 2019

Welcome back to our first feature article for 2019.  As has become tradition we start the year with five surprises to watch for on your radar screens ...

Boosting midstream asset value capture | 03 Dec, 2018

This decade has been a tough one for owners of flexible midstream gas assets such as storage, pipelines & regas terminals. Asset returns have been ...

UK battery investment 3: building an investment case | 15 Oct, 2018

The current interest in UK merchant battery investment is supported by some powerful fundamental drivers. The most important of these is a strong case ...

Battery investment 2: Monetising battery value | 01 Oct, 2018

2019 may be the breakthrough year for merchant battery investment in the UK.  Battery developers have re-focused investment cases on wholesale market ...

UK battery investment 1: business model transition | 03 Sep, 2018

Battery storage broke through the investment viability barrier in the UK’s 2016 capacity auctions. 200MW of batteries were successful in the 2016 ...

A new UK CCGT despite no price signal | 04 Jun, 2018

The 8 £/kW clearing price in this year’s capacity auction presented a serious roadblock for new CCGT projects. But Scottish utility SSE has mounted ...

Plant closure: Valuing closure option vs alternatives | 23 Apr, 2018

Plant closure decisions are usually driven by expected profit.  But a simple assessment of plant profitability is usually an inadequate approach to i ...

NW Europe’s flexible capacity crunch | 19 Mar, 2018

The luxury of oversupply There has been a structural oversupply of capacity in North West European power markets this decade (with the notable exce ...

UK capacity auctions set up stack transition | 15 Jan, 2018

The UK power market is preparing for two capacity auctions in Q1 2018.  There is no shortage of competition to provide capacity.  The outcome of the ...

Funds taking on market risk to boost returns | 27 Nov, 2017

Investment funds have made a big push into European energy infrastructure this decade. This has been fuelled by a search for yield in a record low int ...

Taking nuclear life extensions seriously | 20 Nov, 2017

France has reignited the debate around nuclear power plant closures in Europe this month. The French government has just reneged on its promise to red ...

Cracking the new US export business model | 06 Nov, 2017

48 mtpa of 2nd wave US export projects are queued to go.  They have sites, FERC approval and in many cases good access to infrastructure and skilled ...

Where will the next wave of LNG supply come from? | 30 Oct, 2017

The 2015-2020 wave of new LNG supply has been built on Australian and US export projects. Australian liquefaction projects were underwritten by long t ...

Energy from waste investment in the UK | 16 Oct, 2017

Energy from waste (EfW) is a relatively small but rapidly evolving sector in North West European power markets. EfW investment is being driven by tech ...

Flexibility investment: New UK CCGTs | 02 Oct, 2017

New CCGTs have not fared well so far in the UK capacity market. Centrica’s repowering of the Kings Lynn plant (0.4GW) has been the only successful p ...

Investment in flexibility: gas peakers | 04 Sep, 2017

A major transformation is underway in European power markets. Ageing coal, gas and nuclear plants are retiring and being replaced to a significant ext ...

European midstream gas infrastructure in focus | 26 Jun, 2017

Midstream gas assets are coming back into focus after a lull across the first half of this decade. A 20% decline in European gas demand between 2010 a ...