Onshore Energy Conference — London Onshore Energy Conference — London | Page 32

i) DAY AHEAD WHOLESALE ELECTRICITY PRICES
140

14 September 2016
£143.50 per MWh

120

£/MWh

100

80

60

40

20

16

16
O

C

T

P

16
G
U

A

SE

16

16

L
JU

JU

N

16

16

A
Y
M

16

PR
A

M

A

R

16

16

B
FE

JA

N

15

15

EC
D

N

T
C
O

O
V

15

15

15

P

G

SE

15
U
A

JU

L

15

15

N
JU

15

A
Y
M

15
R

PR

A
M

A

15

15

B
FE

14

N
JA

14

EC

T
C

D

N

O

O
V

14

0

32

4 , 2 06

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4,

68

5

1,8 62

17
2 ,6

At the time of writing this article, UK
Hinckley Point C the green light to proceed,
electricity prices are spiking again. Over
with its Strike Price of £92.50 per MWh.
the last few years, day ahead wholesale
The power price roller-coaster is likely to
electricity prices have been relatively stable.
continue over this Winter, particularly if we
However, thanks to an unseasonably warm
have cold, still conditions and this will make
September (causing an increased demand for
Business Interruption (“BI”) losses more
air conditioning), light winds and a number
difficult to predict in advance hence making
of French units being offline, the day ahead
the reserving process more challenging.
price spiked to £143.50 per
MWh on 14th September 2016
ii) CAPACITY AWARDED BY TECHNOLOGY TYPE
as shown in illustration i, and
have been continuing to spike.
CCGT
According to ICIS Heren,
on 14th September “The UK
CHP & AUTOGENERATION
power market recorded its
2,
most expensive ever baseload
HYDRO
43
0
trades amid a roller-coaster
COAL / BIOMASS
session… Three individual
7,575
offers of power to be delivered
21,808
MW
DSR
all day on Monday, priced
at £200 (€235)/MWh – were
NUCLEAR
476
lifted over a 40 minute spell
OCGT & RECIP ENGINES
late in the afternoon”. This
session also included offers
STORAGE
of up to £1,500/MWh being
accepted by the System
INTERCONNECTOR
Operator on the balancing
market. Coincidentally, the
SOURCE: NATIONALGRID T-4 CAPACITY MARKET AUCTION 2019/20
next morning the Government
announced that it had given