For the second time in two weeks, the UK’s National Energy System Operator on Tuesday warned that Britain faces a reduced system margin, with a system margin shortfall of about 1.88 gigawatts (GW) later today.
NESO has issued an Electricity Margin Notice for the afternoon and evening’s peak period between 3 p.m. and 11 p.m. on Tuesday.
“This is a routine and precautionary operational tool, there is no risk to customer electricity supplies and Great Britain’s electricity system remains secure,” the operator noted.
Electricity Margin Notices are used to send a signal to the electricity market. It highlights that, in the short term, NESO would like a greater safety cushion, or margin, between power demand and available supply.
Such notices do not signal that blackouts are imminent or that there is not enough generation to meet current demand, the grid operator noted.
Wind power generation is set to plunge on Tuesday, leaving the system without much of the wind power generation and relying on gas-fired power stations to back up the power supply.
Wind generation in the UK is expected to be 40% below the most recent previous forecast from earlier this week and only about 25% of the average wind power generation so far this year, per data from market operator Elexon compiled by Bloomberg.
With not much wind expected to generate the UK’s power over the coming day and night, intraday power prices for delivery between 7 p.m. and 8 p.m. on Tuesday soared early in the day to above $530 (£400) per megawatt-hour (MWh). That’s more than 50% compared to the same prices at an auction on Monday, before the marked deterioration of the wind generation forecast for Tuesday evening.
Wind power supplied nearly 30% of the UK’s electricity last year, and regularly provides about this share of total power generation when wind speeds are favorable.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- India Could Boost Crude and Critical Minerals Supply from Ecuador
- EU Delays Methane Rules, Opens Refinery Talks as Fuel Prices Hit Records
- Gulf Producers Say Importers Should Share the Cost of Hormuz Workarounds
