Wind Power blows high prices away, BEIS wants better Biomass Specs and Ofgem gets innovative

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On the day we discover that Boris broke the law by proroguing Parliament, here at ICON we are preparing for yet more uncertainty, hoping this doesn’t result in even further delays to consultation outcomes and policy postponements.

Putting all these Brexit-y complexities to one side, Westminster life still presses on with a few important updates to note.

The latest round of auctions under the Contracts for Difference scheme has seen strike prices agreed at rates as low as £39.65 per MWh, meaning that renewable energy is now, for the first time, cheaper than wholesale market average prices. The report includes an estimated monetary impact based on ESO models and these show a substantial reduction of total costs to consumers. By 2026/27, costs of CfD could be as much as £246million less than anticipated (based on 2011/12 prices) as a result of this procurement.

We may be biased, but we always think it’s good to get new technologies coming online and with Ofgem’s work on innovating the energy policy making process, we think we can expect to see changes to energy price and policy happening more quickly and more substantially.

For those looking at heat decarbonisation, BEIS has published a technical report on biomass boilers and also issued guidance on how to operate a Special Purpose Vehicle under the Heat Network Investment Programme. With regards to biomass, the report has found that poor performance from this technology is usually due to a lack of understanding  on how to operate and maintain such kit, or from them being oversized to begin with. This goes to show the importance of having a great team onside to help educate staff about the systems being installed and to validate any design work and energy balance calculations.

Finally, Ofgem have a couple of consultations out looking at the domestic sector – one on smart metering and the other on supplier performance standards. The regulator is also asking for feedback on the performance of the National Grid ESO – one for DSR participants, perhaps.

As ever, if you have any questions, let me know.

Yours,

George

For more information, or to download this week’s full report, please log onto the ICON app.