UK power market

The dangers of mixing forecasts and forward curves | 30 Mar, 2015

Forward market liquidity has steadily developed with the evolution of traded gas and power markets in Europe. This has supported traders and asset man ...

Falling fuel prices and thermal plant margins | 26 Mar, 2015

There have been some big moves in commodity prices and currencies so far in 2015.  Sharp declines in oil, gas and coal prices have reduced the fuel c ...

The mountain of new LNG supply | 16 Mar, 2015

Despite current conditions of oversupply, the LNG market is set to embark on a growth spurt over the next five years. The relatively long lead times f ...

Power capacity payments are coming across Europe | 02 Mar, 2015

European power markets are slowly but steadily moving towards implementing capacity remuneration mechanisms for flexible generation.  A consistent pa ...

Timera take on the 1st UK capacity auction | 12 Jan, 2015

The first UK capacity auction was concluded just in time for Christmas, with 49.3 GW of capacity procured at a clearing price of 19.40 £/kW.  The au ...

2014 themes and the way forward into 2015 | 08 Dec, 2014

With Christmas approaching this is our last article of 2014.  We will be back with more in early January.  To finish the year, it has become a bit o ...

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 ...

Tighter UK market, higher spreads & volatility | 10 Nov, 2014

National Grid has now published its view on the UK power market supply & demand balance going into the current winter.  The situation looks very ...

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 ...

Commercial implications of the UK capacity market | 10 Mar, 2014

The countdown has commenced to the implementation of the UK Capacity Market.  Between now and November, the UK power market will be focused on the vo ...

Pricing dynamics in the new UK capacity market | 17 Feb, 2014

Changes to the UK power market have been coming thick and fast this decade.  The implementation of a Capacity Market in November 2014 is just one of ...

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 ...

Carbon price floor impact on the UK power market | 02 Dec, 2013

The UK carbon price floor is driving a wedge between the UK and European cost of carbon.  This will have an important impact on the competitiveness o ...

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 ...