Christopher Caldwell

Fidra Energy, the UK energy storage platform launched by EIG Global Energy Partners in October, is working with a financial adviser to arrange a debt package for a 1.45GW/2.9GWh greenfield standalone #BESS project in Yorkshire. 👉 https://lnkd.in/dgR_H7uV

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Interesting thinking about the electricity market and how market forces could support an evolution of the way we do business there. "For instance, similar to markets that trade different grades of crude oil (WTI and Brent), perhaps we can “grade” energy based on its characteristics, so that energy that includes inertia and VARs is valued higher than energy that doesn’t include these other characteristics. A MWh of energy from a synchronous generator has a higher operational reliability value than a MWh of IBR energy, so how can we signal this economically?"

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Partner's News The Energy Hubs – Fill the Backbone report by Hydrogen Scotland member Net Zero Technology Centre highlights the emerging opportunity to export green hydrogen from Scotland into the expanding hydrogen market in Europe. Economic modelling indicates that a 10 GW scale Energy Hub in Scotland producing green hydrogen from floating offshore wind could produce hydrogen for £3.90/kg. To capitalise on this opportunity, Scotland will need to develop strategic Energy Hubs in time to meet this growing demand. https://lnkd.in/gPJgp5SC

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This week we look at the government's Clean Power 2030 Action Plan, the government's latest update on REMA, NESO guidance on grid connection reform, and more. Please do share this with your contacts. To do so, you can use the embedded LinkedIn link at the base of the website article to share this week's publication directly on your profile. Below is some suggested wording to accompany your post: In this week's festive edition of the #EnergyTransition we look at: Government publishes Clean Power 2030 Action Plan; Government updates on review of energy market arrangements; and NESO publishes 'strategic alignment' criteria for grid connections #CP30 #REMA #GridReform #NetZero #EnergyTransition

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“I think hope is as important. Knowing there is a solution is as important as knowing there’s a problem.” 💡 Carbon Brief recently interviewed Octopus Energy CEO Greg Jackson (leader of the Sustainable Markets Initiative's Energy Transition Task Force) to discuss some of the major challenges facing the energy sector as it looks to decarbonise.  Are #heatpumps a cause for optimism?  Is net zero power by 2030 achievable?   #Hydrogen for heating?  Are #electricvehicles the future? Read here 👇

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19th November Energy Market Update – As temperatures across Northwest Europe dip further below the five-year average, the UK energy market remains on a bullish trajectory. Yesterday's session saw gas and power prices strengthen amidst increased demand, supply-side challenges, and reduced nuclear generation. This morning, the UK gas system opened long by 22 mcm/day. Demand for heating is on the rise, with temperatures forecasted to drop another two degrees today. Total LDZ demand is expected to increase correspondingly, while gas-for-power demand remains steady. Norwegian gas flows into the UK are robust at 111 mcm/day, complemented by healthy LNG send-outs of 76 mcm/day. Notably, the UK anticipates eight LNG tankers in the coming weeks, with two arrivals from the United States today. This stable supply chain is vital as the continent's storage withdrawals continue, with pan-European storage levels at 90.74%. On the power side, prices have mirrored the upward momentum of gas markets. Yesterday's unplanned maintenance at Heysham nuclear plant has temporarily curtailed UK nuclear output to 4.1 GW, with the outage projected to last 28 days. Wind generation is forecasted to hover around seasonal norms, providing limited relief as cold weather persists. In broader markets, Brent crude has climbed to $73.30 per barrel, and European carbon prices edged higher, with EUA Dec-24 certificates trading at €69.51 per tonne. Meanwhile, the pound saw mixed movement, standing at €1.1967 and $1.2676 against the euro and dollar, respectively. Today's dynamics emphasize a familiar winter trend: rising energy demand coupled with supply-side uncertainties. With colder weather and further strain on generation assets likely, the market will be closely monitoring developments in supply routes and storage usage across Europe. Stay warm and stay informed as we navigate another dynamic week in the UK energy market.

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Daily Energy Report November 8th: A cool start to the day finds UK energy markets bracing for lower-than-average temperatures across Europe, impacting both gas and power prices. The UK gas system began the morning undersupplied by 10 mcm/day, with colder weather set to intensify from mid-November. Natural gas for power demand is lower on the day-ahead, as wind generation rises, offsetting the need for gas-fired power production. LNG supplies are stable at 33 mcm/day, with three cargoes scheduled for arrival soon, helping to maintain a steady flow of imports into the UK and Northwest Europe. Norwegian exports remain consistent at 331 mcm/day, despite minor disruptions due to unplanned maintenance at key sites. The UK Day-Ahead gas price is at 103.65 p/therm, a slight rise compared to previous days as the seasonal temperature drop begins to reflect in pricing. Expectations for lower-than-normal temperatures, particularly from November 13th onward, are feeding into this price firming. Curve contracts also strengthened, driven partly by broader market influences, including movements in the oil markets and post-election volatility in the US. In parallel, Pan-European gas storage levels remain robust at 94.43%, a comforting buffer as winter demand looms. On the power side, UK Day-Ahead baseload is trading at £96.10/MWh, with high wind generation easing some pressure on gas demand for electricity production. Nuclear output remains steady at 4.7 GW, though two reactors remain offline, accounting for a total of 1.2 GW in curtailed capacity. Wind is expected to continue to play a critical role in balancing the grid over the coming days, while solar output, currently low, is anticipated to exceed normal levels starting Monday. Commodities also show price adjustments: Brent crude for December is up to $75.63 per barrel, while coal for 2025 delivery sits at $121.12/tonne, reflecting steady demand expectations. Carbon pricing for EUAs has climbed to €66.04/tonne, with the UK ETS at £38.00/tonne, underscoring the ongoing pressure on carbon markets amid seasonal adjustments and higher demand forecasts. On the currency front, the pound has seen minor movement, with the GBP/EUR exchange rate at 1.2021 and GBP/USD at 1.2986. This currency stability aids in smoothing import costs, particularly for gas, but shifts in either direction remain likely as winter demand and international market conditions evolve. Today’s market data highlights the intricate balance of supply and demand factors at play as the UK and Europe prepare for colder weather and a potential uptick in heating and power requirements. As conditions shift in the coming days, these factors will continue to define energy prices and trading behaviors across the UK and beyond.

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Could low valuations for #CleanEnergyGroups be hampering #EnergyTransition??? Could #Subsidies and intermitent #LowElectricityPrices be having any influence on these low valuations???

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UK Energy Market Update – 19th August 2024 Gas Market: The UK gas market has opened today with the system 7 mcm/day short, driven by lower nominations from the Langeled pipeline, while UKCS production remains stable. Strong exports to the continent continue, incentivised by the NBP Day-Ahead discount to TTF. The NBP Day-Ahead price is up slightly, trading at 79.50 p/therm. On the curve, winter contracts remain firm, with continued focus on storage injections ahead of the winter season. Pan-European storage levels are strong, with a collective fill rate of 89.40%. Power Market: UK power prices are seeing mixed movements. The UK Day-Ahead Baseload is priced at £64.24/MWh, reflecting a slight firmness. However, renewable generation, particularly from wind, is expected to limit the need for gas-fired power this week, especially on Thursday, with forecasts showing up to 15,000 MWh/h of wind capacity. On the supply side, nuclear availability is impacted by planned outages at key sites, including Heysham and Torness, adding to the overall market tension. Oil & Coal: Brent crude is relatively stable, trading at $79.68/bbl, while ARA coal for Cal Y+1 remains elevated at $130.11/tonne, reflecting continued demand and supply-side constraints. Currency: The GBP/EUR exchange rate is currently at 1.1747, maintaining stability in the broader energy market context. Outlook: As we approach the end of August, the UK energy market remains focused on storage levels and the geopolitical risks that could impact supply. With cooling forecasts and robust wind generation expected, we might see some easing in power prices, but the gas market continues to be underpinned by storage and export dynamics.

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A new article by the Financial Times explains the issues amassing as part of Britain’s clean energy transition: “Sixty-three per cent of the roughly 4,000 applications submitted for wind, solar and battery projects between 2018 and 2023 have been refused, abandoned, withdrawn or had their planning permission expire, according to Cornwall Insight, an energy consultancy.  A further 18 per cent have been sent back for revision, leaving only a fifth of projects either waiting for a planning decision or ready to be built.” While renewables will play a crucial role in the fight against climate change, these problems highlight the need for energy saving alongside the clean transition. Furthermore, demand side response and time of day tariffs are best paired with granular energy data. Lesson learned? it’s not just about where your energy comes from, it’s how, when and how much you use it! https://lnkd.in/e3GxQEfe   #energytransition #cleanenergy #energymanagement #climatechange #renewableenergy

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Dedicated Energy Hubs Needed to Transform Scotland into Leading Hydrogen Producer   The Net Zero Technology Centre (NZTC), has today [27 June 2024] launched its ‘Energy Hubs: Fill the Backbone’ report, providing recommendations that will help scale Scotland’s hydrogen production potential and establish itself as a leading exporter of green hydrogen through the development of large-scale energy hubs. 🔽 Find more info in comments below 🔽 #EnergyHubs #Scotland #HydrogenProduction #CleanEnergy #RenewableEnergy #GreenHydrogen #OilandGas #RenewableEnergy #GreenEnergy ⤵️ Click Follow on our page to keep up to date with energy news ⤵️

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National Grid launches platform for transparent DUoS tariffs. National Grid has unveiled an online platform offering customers simplified access to Distribution use of Service tariffs across all its licence areas. ChargeUK Cordi O'Hara OBE FEI Chris Pateman-Jones #energydemand #energycustomers #energyconsumption #energybills #energycosts #energycrisis #energysupply #energysupplier

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ScottishPower(Iberdrola) subsidiary SP Energy Networks has unveiled a £10.6 billion investment in the UK transmission network after submitting its plans to the Ofgem regulator. SP Energy Networks plans to double its transmission workforce, creating 1,400 new directly employed jobs and supporting another 11,000 in the supply chain. The firm said the investment will “help rewire Britain” and deliver critical electricity infrastructure, including 12 new major substations in Scotland.

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#UK power company Drax Group has set up a US subsidiary, Elimini, and plans to spend ~$12.5 billion to build five #carbon negative power plants in the US. The five plants will collectively generate 750MW of #electricity by burning #biomass while capturing their collective annual #carbonemissions of 7.5M tonnes. The process, known as #BECCS (bioenergy with carbon capture and storage), has the potential to annually generate $500M in #IRA tax breaks for Drax. While BECCS is not without its challenges and controversies, if successfully executed, it has the duel profit potential of selling power as well as #carboncredits. Learn more about Elimini and its plans here: https://elimini.com/ If you don't have the FT, read the Reuters article "UK’s Drax to invest up to $12.5 billion in US biomass power plants" here: https://lnkd.in/e4UWUPuY #sustainability #energytransition #CO2 #cleanenergy #decarbonization #decarbonisation #carboncapture #ccs #ccus #carbonremoval #unitedkingdom #bioenergy

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A good number of countries, especially the ones whising to abandon #NuclearPower are looking to low-carbon gases like #Hydrogen to replace the functions gas meets now... But is it really so simple??? Obviously the ptential to replace #Natural gas is there, but #HydrogenLobby is missing some of the significant challenges and considerations such as: ♦ #InfrastructureRequirements: Replacing natural gas with hydrogen would require substantial modifications to existing infrastructure, including pipelines, storage facilities, and appliances, because hydrogen has different properties such as lower energy density and higher reactivity. ♦ #Cost_And_Efficiency: Currently, hydrogen production, especially green hydrogen, is more expensive than natural gas. Additionally, the processes to convert and transport hydrogen can be less efficient, though technological advancements are expected to improve this over time. ♦ #Blending_With_NaturalGas: In the short term, hydrogen can be blended with natural gas in existing pipelines, reducing carbon emissions while using current infrastructure. However, for full replacement, more significant changes would be needed. ♦ #LongTermVision: Hydrogen could play a key role in a decarbonized energy future, particularly in sectors where natural gas is hard to replace, like industrial processes and heating. However, its widespread adoption will depend on advances in production, storage, distribution, and cost reduction. Let's not make the same mistake with #Hydrogen as with #Renewables!!! Neither of them are yet ready to sustain the #EnergyTransition!!!

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Yesterday, I addressed New Statesman's Politics Live conference on Forging the Green Future. The global race to secure investment in green energy has never been more competitive. With initiatives like the EU’s Green Deal providing compelling incentives to attract global investors, the UK must act decisively to remain at the forefront. Our Prime Minister has shown global leadership on climate at COP29, furthering our national interest in energy security and attracting greater investment into the UK. The Labour government is stepping up with bold plans to accelerate green investment, particularly in clean, home-grown energy production. However, meeting our net zero targets demands more than investment—it requires a whole-economy approach. Collaboration across industry, policymakers, regulators, and investors is essential to ensure the UK leads the way in the transition to clean energy. #COP29 #Politicslive #cleanenergy #netzero

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Daily Energy Market Report: As of 7th November 2024, the UK energy market reflects the ongoing volatility driven by fluctuating gas supplies, shifting currency values, and varied renewable generation forecasts. Natural gas and power prices are responding to both domestic and international pressures as the market navigates supply chain developments and seasonal demand. Today, the UK's natural gas market opened with a slight oversupply, at around 7 million cubic meters per day, suggesting a temporary buffer in meeting national demand. Despite low interconnector flows to the continent, the UK has a minor import of 1 mcm/day via the BBL pipeline due to retained premiums in the National Balancing Point (NBP). LNG sendouts are steady, with strong inflows from Norwegian gas sources further stabilising supplies as maintenance at the Teesside terminal concluded. Additionally, Norwegian gas continues to support UK imports with robust flows via the Langeled and Vesterled pipelines, which contribute to the steady supply amidst anticipated temperature drops later in the month. On the pricing front, NBP Day-Ahead gas closed at 102.40 pence per therm, while forward contracts for December and January 2025 also saw modest changes, reflecting a stable near-term market outlook. Meanwhile, UK power prices showed a downward shift, with the Day-Ahead Baseload price dropping by £16.38 to £102.10/MWh. Renewables have been contributing less than usual, as wind generation forecasts remain below average for the coming week. This lower wind generation has put pressure on N2EX prices, which peaked this year with an aggregate daily price of 127.15 GBP/MWh, further reflecting the importance of renewables in offsetting gas-fired generation costs. Looking to international influences, yesterday's US election results, marking a decisive victory for Donald Trump, spurred market reactions, with expectations of increased oil production and a stronger dollar potentially impacting future gas prices. Meanwhile, European hubs like TTF have shown price increases on the back of a bullish gas complex in the final hour of trading, partially driven by limited LNG inflows. UK storage levels remain healthy, with many sites nearing or reaching capacity, which should help mitigate the risks of winter supply shocks. Individual storage levels across major sites like Aldbrough, Hornsea, and Isle of Grain demonstrate solid buffers, keeping the UK well-positioned for anticipated demand spikes. Furthermore, two LNG cargoes are inbound, scheduled to arrive over the weekend, which should provide additional flexibility. As the UK braces for colder weather, short-term outlooks are centered on balancing renewable integration, currency fluctuations, and any shifts in natural gas flows from European neighbors. Continued monitoring of US and European energy policies will also be critical, as the global landscape remains dynamic.

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Its turning into a long wait for Electricity Pricing Reform. Another quarter, another Energy Price Cap announcement from OFGEM, and anyone waiting for a step change in the ratio between Electricity and Gas Prices will be disappointed again. The ratio is sticking firmly at around 4. Despite multiple consultations, and the increasing urgency to decarbonize home heating by switching to heat pumps, there is still no adjustment. If you need a simple proof that it can be done, I wrote an article on this last month. (https://lnkd.in/d4BH7b5P ) So in the absence of reform it is likely that there will be more time of use tariffs for heat pump owners filling the gap. If these can be expanded from the current constraints: owning an EV, or owning a heat pump, to include owning a home battery, then a very large number of home-owners can benefit from lower bills immediately, and see these drop further when they are able to transition from a gas boilers to a heat pump. But we could make this transition a whole lot easier if the charges driving the gas and electricity unit prices were rationalized at the earliest opportunity.

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