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Conventional generation

Latest in Conventional generation

T-4 capacity auction clears at record high price
The four-year-ahead (T-4) Capacity Market auction has cleared at a new record high price of at least £60/kW/yr. According to National Grid Electricity System Operator (ESO), the descending-clock auction for delivery starting in 2026/27 cleared in the third round covering the price range £60-65/kW/yr.
News
Capacity Market secures record year-ahead power
The latest year-ahead Capacity Market auction has delivered a record amount of contracted back-up power. The results of the T-1 capacity market auction for 2023-24 show that 5.8GW of capacity has been secured, with a clearance price of £60/kW - the second highest in a T-1 auction. Among the talking points from the auction were the success of nuclear plants and the extension of a coal power station unit's life, which one analyst said was a sign that "coal is not dead … yet”.
News
New generation licence condition to stop ‘excessive’ balancing profits
Ofgem is proceeding with proposals to introduce a new licence condition to prevent generators in the Balancing Mechanism from obtaining “excessive” profits by first signalling their intention to cease generating and then raising their prices to remain on. The move comes after parallel investigations by National Grid Electricity System Operator and Ofgem found instances of what the regulator described as “immoderate” behaviour over the winter of 2020/21,
News
Capacity Market changes set out exit strategy from gas
The government’s proposals to align the Capacity Market with the UK’s net zero target have been welcomed as a sensible pathway away from unabated gas generation. However, experts tell Utility Week this commitment must be matched by a concerted push to ramp up low-carbon flexibility.
Analysis
Tougher penalties for Capacity Market non-delivery proposed
The government has proposed tougher penalties for companies that fail to honour their Capacity Market obligations. Alongside proposals to tighten emissions from Capacity Market generation and introduce new three-year contracts for flexible low carbon technologies, such as demand side response (DSR) and storage, BEIS is suggesting much stronger penalties for companies that do not deliver back up power when required.
News
Weekend press round-up: Energy bill support for firms to be cut
In our latest review of sector coverage in the national media, there are multiple reports that the government will announce reduced support for business energy bills today, as trade bodies warn of the strain their members are under. Meanwhile, an influential Conservative committee has called for communities living near new onshore wind and solar farms to be given 100% discounts on their energy bills and there are warnings that England faces further droughts this summer.
News
ESO stands down backup coal units
National Grid Electricity System Operator (ESO) has stood down the two backup coal units it had instructed to warm up in anticipation of tight supply margins, saying there would be “adequate available contingency” for Monday evening (12 December). Margins were expected to be tight due the recent cold spell combined with low wind output, which at the time of publication had remained below 2GW throughout Monday.
News
The material component of the energy transition
The adoption of new technologies as part of the decarbonisation of the energy system will require a better understanding of the effects on existing plant components, as well as the development of novel materials and coatings. Dr Joy Sumner, reader in energy materials at Cranfield University, calls for more clarity on which technology pathways the UK will pursue to help focus efforts in the right areas.   
Opinion
Windfall tax blows chill wind through renewables sector
Low-carbon generators have enjoyed a surge in revenues as electricity prices have soared but the government has now decreed that they share their good fortune with the taxman. Utility Week policy correspondent David Blackman gauges reaction to the Electricity Generator Levy announced last week by chancellor Jeremy Hunt in his Autumn budget statement.
Analysis
SSE warns 2035 target to phase out gas power may be missed
SSE will be unable to phase out its fleet of unabated gas-fired power plants by 2035 unless the search for low-carbon alternatives steps up a gear, the company’s head of thermal energy has admitted. Asked whether the company would be able to phase out its unabated gas plants by the 2035, the date that the government has set for a fully decarbonised grid, Catherine Raw told the BEIS Committee: “If we continue at the pace we are at today, the answer is probably no.”
News
Gas exemption from generator levy branded ‘inexplicable’
The government has justified exempting fossil fuelled-fired plants from its new windfall profits tax on generators, which one critic has branded “inexplicable”, amidst widespread concerns that the new levy will damage investment in UK renewable energy. A technical note setting out the details of the new Electricity Generator Levy, published by the Treasury on Thursday (17 November) alongside the chancellor of the exchequer’s Autumn Statement, confirms that the new tax will apply to nuclear, renewable and biomass electricity generation.
News
Regen opposes calls for locational power pricing
Regen has pushed back against calls for the introduction of locational wholesale power pricing, arguing this would not provide effective price signals for investment decisions and would significantly increase investment risk. The non-profit consultancy said locational price signals should instead be provided by electricity transmission charges, which should be reformed to make them more stable, predictable and cost-reflective.
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