Continental power market

Market interconnectivity and the next 6 months | 01 Dec, 2014

The term 'big price move' is used too liberally in relation to energy markets which have a relatively high level of ambient volatility.  But last wee ...

First UK capacity auction in focus | 27 Oct, 2014

Note: Several hours after this article was published DECC announced that they had revised the 1st auction capacity target down.  The article has now ...

German recession, power prices & generation margins | 20 Oct, 2014

After being the poster child of post crisis European recovery, Germany is suddenly facing the combined threat of deflation and recession. German GDP c ...

UK power crunch risk remains | 15 Sep, 2014

The threat of a mid-decade capacity crunch in the UK power market made national headlines in 2013. Concern around this threat has diminished noticeabl ...

Gas hub pricing in a state of flux | 14 Jul, 2014

As the summer heats up spot gas prices have continued to slump.  Asian LNG cargoes are changing hands at under 11 $/MMBtu, price levels not seen sinc ...

Investment in UK peaking assets | 07 Jul, 2014

The new Capacity Market may be set to turn UK generation investment on its head.  Power plant development in the UK has historically been focused on ...

A practical view of the flexibility value of gas and power assets | 30 Jun, 2014

Flexibility value has become a popular concept in energy markets.  At a qualitative level the benefits of flexibility are reasonably well understood. ...

Interconnectors – a competitive source of new capacity for the UK power market | 09 Jun, 2014

The UK Capacity Market is currently being implemented to ensure new flexible capacity is built as older plants retire.  While generation investors ar ...

Centrica asset sales & the current market environment | 26 May, 2014

Earlier this month Centrica announced a major shift in its generation portfolio strategy.  Centrica intends to sell all of its larger CCGT assets and ...

New UK capacity market information & its impact | 14 Apr, 2014

The UK government has released further details of its intended approach for the 1st capacity auction, now scheduled for December 2014.  These provide ...

Germany vs UK generation margin comparison | 31 Mar, 2014

Comparisons between Germany and the UK are always an interesting exercise.  Germany is impressive in its efficiency, structured approach and longer t ...

LNG induced gas price squeeze in South West Europe | 03 Mar, 2014

It has again been a lively winter in the global LNG spot market.  Spot prices are following a pronounced seasonal shape as winter buying has driven A ...

UK Capacity Market to become a reality in 2014 | 27 Jan, 2014

2014 will mark the end of the energy only power market that has served the UK over the past two decades.  By the end of this year the energy market w ...

Conventional power plant value analysis has evolved | 20 Jan, 2014

The value of European gas and coal fired power plants is a very different proposition to what it was 5 years ago.  Growth in renewable output has ero ...

Beware of a shift to central planning | 18 Nov, 2013

The UK’s 2001 implementation of the NETA wholesale power trading arrangements marked the ideological peak of a push towards liberalised wholesale po ...

Gas plant & renewable penetration: a UK case study | 21 Oct, 2013

The increase in renewable capacity is eroding gas plant generation margins across Europe.  At the same time there is an increasing system requirement ...

Getting comfortable with CCGT extrinsic value | 30 Sep, 2013

CCGT power plant valuation has traditionally focused on intrinsic value, the value of dispatching the plant against prices observed in the forward mar ...

A mini-meltdown in the uranium market | 09 Sep, 2013

The uranium market is a quieter cousin to the larger global markets for gas and coal.  But despite the post Fukushima shift in public opinion away fr ...

Security of supply concerns intensify in UK power market | 08 Jul, 2013

As of June 2013, the official view of security of supply risk in the UK power market has increased again.  Ofgem’s recently released Capacity Asses ...

Feeling the pain of European generators in 3 charts | 10 Jun, 2013

Conventional generation portfolios in Europe have had a tough two years.  The policy environment has been hostile and the slide in wholesale power pr ...

Emerging influences of the German power market | 20 May, 2013

In a recent article we set out the impact of the rapid increase in renewable production on the German market.  Because Germany is at the core of the ...

Renewable growth and German power market dynamics | 22 Apr, 2013

Angela Merkel’s coalition government is under pressure from rising energy bills at the same time it is confronting a significant slowdown in the dev ...

The European gas plant bust is underway | 11 Mar, 2013

The pain being suffered by owners of European gas-fired power plant has escalated over the last 12 months.  Weak power demand, subsidised renewable b ...

Currency wars and European energy portfolios | 11 Feb, 2013

Foreign exchange market volatility has sprung to life over the Christmas break.  Over the last two months the EUR has appreciated 7% against USD and ...

CCS – Will it take off anytime soon? | 14 Jan, 2013

This week’s article is the next in a series of Guest Posts written by Howard Rogers, the Director of Natural Gas Research at the Oxford Institute fo ...