Solar & Storage Live’s Post

Another RESS round completed; results are out and a testament to the fact that DECC is listening to the industry. We are definitely moving in the right direction with making the auction structure more attractive to investors by reducing risk where possible, which has led to higher capacity provisionally awarded for both wind and solar and a lower average bid price as compared to RESS 3. But is it far enough? 1. We are still projecting that we will fall short of 2030 targets; 2. Bid prices haven’t fallen as much as we would have hoped in order to make a significant dent on reducing cost to consumer which it may have if full indexation were to be included in the T&Cs and; 3. Hybrids are again nowhere to be found on the awarded project list With the finish line i.e. 2030 fast approaching it is time to understand how far we need to go to drive the magnitude of investment that is actually needed. #renewableelectricity #Ireland #RESS4

Not another analysis of the implications of zonal pricing in GB?  Well, hopefully this is an interesting one. Understanding investor implications of the switch to a zonal market is very difficult – in this most recent analysis we look at what might be the implications for CfD support payments from any increase in risk. For an archetypal Scottish windfarm we compare the extent to which the different locational signals in a zonal and national market might drive differences in project risk. Specifically, we compare: ■       the uncertainty of project returns due to revenue volatility across a range of possible future scenarios for network development in a zonal market (taken from analysis by LCP Delta for SSE plc); and ■       the uncertainty in project returns due to transmission charge (TNUoS) volatility we have historically observed in a national market. We then illustrate the potential impact the increase in uncertainty could have on strike price bids in a zonal market. While the answer clearly depends on the CfD structure adopted and the scenarios which investors view as credible, in this analysis the zonal risk looks significant relative to TNUoS. Thanks to the SSE plc team, in particular Ben Harries, the Frontier team of Harry Davies and Dan Roberts, and the LCP Delta team for letting us plunder the data from their future scenarios!

Our colleague Gilbert Guntschnig attended the Electricity Market Integration Forum 2024 organized in Brussels this week. Key takeaways from the Forum are 👇 ➡ The Contracting Parties were given a unique offer with the Electricity Package adopted in December 2022 by the Ministerial Council to adhere to the pan-European electricity markets ➡ The transposition of the Package is underway in the countries, but additional delay needs to be expected ➡ The first go-lives within SDAC towards the end of 2025 or beginning of 2026 will be challenging to meet ➡ CBAM and the EU Growth Facility will be great incentives to speed up progress and accelerate implementation

As part of the ongoing REMA programme, the idea of introducing zonal pricing for wholesale electricity in Great Britain is hotly debated across the energy sector. 🔋💡 Our recent analysis with LCP Delta, commissioned by SSE, considers the implications for investors, with a particular focus on estimating the impact of a change in risk on CfD strike prices. 📌 Click here to read the full report https://okt.to/yDu360

Price impacts of a potential bidding zone split in Germany Free Webinar, Tuesday, July 23rd 2024, from 4.00 p.m. until 4.30 p.m. (UTC+2)   By 2026, the ACER Bidding Zone Review could turn out to bring Germany a decision to fundamentally reform its power market design.   At enervis, we have assessed how the power prices following a bidding zone split into a Northern and a Southern zone could look like. The reform would bring far-reaching consequences for a wide range of market players. Industry and offtakers in the South are facing a risk of a substantial increase in base prices in the first years of a decoupling, depending largely on the progress of the grid expansion. RES asset owners in the North are affected even stronger by falling capture prices and increasing low price hours. Long-term PPA contracts closed under the current market design face the risk of being reopened and renegotiated, in particularly if they fulfil demand in one zone with supply from the other.   In our free webinar on July 23rd, we give insights into our new study and would like to discuss key results and implications with you.   Further information and registration on our website: https://lnkd.in/dUTZuKkC Don't hesitate to get in contact with our experts directly: Julius Buschle and Tim Steinert.   #biddingzonesplit #wind #energy #powermarket #ppa #powerprices #captureprices #capturerates #baseprice #renewableenergy

On 12th March 2024, the UK Government’s ambitious Review of Electricity Market Arrangements (REMA) entered its second stage of consultation. So, what are the four key challenges the second phase of REMA aims to address? Read our latest insight to discover more. https://okt.to/MfYK3L #powermarkets

If you missed Stephen Hart, our Integrated Heating Solutions Director discussing Innovations in the District Heating sector at last month’s Futurebuild show, no problem, you can watch the video here.👇 In it Steve discusses the smart energy systems of tomorrow, the 4H approach to enable the energy transitions and how solutions providers like Baxi are there every step of the way when it comes to Heat Networks and District Heating. https://brnw.ch/21wIW5x

Check out the latest issue of Energy in Buildings & Industry (EiBI), where you’ll find our Managing Director, Neil Fitzsimons, talking about the role that heat networks can play in helping to decarbonise the UK. We're on page 14... https://lnkd.in/eJ_NX64K

  For several years now, the IESO has been working closely with stakeholders to prepare for the renewal of our electricity markets in 2025. Today, we reached another major milestone as the IESO’s Board of Directors approved the market rule amendments needed to operationalize the renewed markets.    The rule amendments will be effective November 11, 2024, facilitating registration activities in advance of the launch of the renewed market on May 1, 2025.     The Market Renewal program will make improvements to the current electricity market design, by improving how we supply, schedule and price electricity, leading to system efficiencies and supporting the grid of the future. This project will deliver significant value to the system and Ontario consumers – including an expected $700 million in benefits in the first 10 years alone. It will also build a foundation for Ontario’s electricity markets to continue to evolve, as new technologies emerge and are able to contribute to a reliable, affordable and sustainable electricity system for the province.    More information about Market Renewal: https://lnkd.in/gM-Ebt5M    More information about the amendment proposals: https://lnkd.in/gNKBYwW9

👇multiple diverse brains, styles and backgrounds are needed to solve the most complex questions such as the #UNSDG7 themed ones below. Please do take the time to provide thoughtful, rounded and holistic input below. It really does help.