European power market

Evolution of UK balancing flexibility | 19 Aug, 2019

Billions of pounds are being invested in flexible peaking capacity in the UK, as the coal fleet closes and older gas plants retire.  The two dominant ...

FX movements driving energy prices | 08 Jul, 2019

Global trade & geo-political tensions have been steadily rising this year. For example the US-China trade war (& broader power struggle behind ...

Value drivers for Spanish CCGTs | 01 Jul, 2019

Foreign investor interest in the Spanish power market has ebbed and flowed since deregulation. Over this period, Spain has benefited from substantial ...

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 ...

Gas vs coal plant switching practicalities | 10 Jun, 2019

The switching dynamics of European gas for coal plants have never been more important than in 2019.  Falling hub prices are tipping the competitive b ...

Decarbonising European gas: value chain impact | 03 Jun, 2019

Decarbonisation of the European gas market will involve very large scale investment across the supply chain, regardless of the pathway via which it is ...

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 ...

Power sector setting gas prices in Europe | 08 Apr, 2019

Two European gas market records were broken in March. Both LNG and Russian monthly import volumes surged to their highest levels in history. This has ...

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. ...

Europe & Asian gas prices slump | 18 Feb, 2019

European hub prices have fallen 40% since Sep 2018. This is a substantial move over a five month period. It is even more impressive because the price ...

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 ...

Renewables in action: a German case study | 14 Jan, 2019

The roll out of wind and solar capacity is transforming power markets across Europe.  If you want to understand the practical impacts of high renewab ...

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 ...

Major energy surprises of 2018 | 17 Dec, 2018

 As the Christmas break rapidly approaches, it is time for our traditional year end review of energy market surprises. We approach this in two par ...

Shock suspension of UK Capacity Market | 19 Nov, 2018

Last Thursday the UK government abruptly halted the Capacity Market to comply with a European Court of Justice (ECJ) ruling.  The implications of thi ...

Quantifying wind & solar intermittency | 12 Nov, 2018

Averaging wind and solar output volumes reveals some structural patterns.  Wind output tends to be higher during the day time than at night and has a ...

Power plant optionality & dispatch cost hurdles | 29 Oct, 2018

The transition taking place in European power markets is reshaping supply stacks. Retiring coal, CCGT & nuclear plants are being replaced with a c ...

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 ...

How fuel & carbon prices are driving switching | 10 Sep, 2018

Switching dynamics of gas for coal plant has been a key theme of this blog.  Power sector switching is one of three key mechanisms currently setting ...

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 ...

European emissions: Germany in focus | 20 Aug, 2018

European carbon emissions have declined 10% over the last decade, mainly driven by a reduction in power plant emissions. Renewables have led policy ef ...

Global emissions: running to stand still | 16 Jul, 2018

Decarbonisation has rapidly become one of the driving forces of energy market evolution across the last decade. It is shaping the energy policy landsc ...

Renewables can plug the French capacity gap | 02 Jul, 2018

We recently considered Belgium’s challenges in replacing thermal capacity with renewables.  The conclusion: the viability of this approach is risky ...

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 ...