Season 3 Episode 3:
Inside GB's power market with Rajiv Gogna
29 September 2021
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In this week’s episode, we speak to Energy Analytics expert Rajiv Gogna about the recent bizarre goings-on in the GB power markets. We hear an explainer on how the GB’s electricity market actually works, what’s been happening this month, and what it all means for the future.
Read Rajiv's latest blog: What is causing the record pricing in the GB power market?
- How the GB power market works, and has changed, including the 'Day-Ahead' price auctions, the key buyers and sellers in the market, and the role of National Grid in the final “balancing actions”.
- What’s going on right now: low wind, high gas prices, lots of facilities offline which have created a supply crunch and a surge in prices.
- Should we blame unreliable gas prices or unreliable renewable energy?
- Takeaways for investors – what’s the latest on renewable auctions and does this affect projects with CFDs etc? As well as some interesting thoughts on how this helps make the investment case for storage.
- The future of the GB power sector in the context of Net Zero.
- The impact on society: How much of the increase is passed to consumers (spoiler: all of it).
- What it could mean for the near-term future:
- Are we ok for this winter?
- Brexit? (GB-France interconnector)
- Controls on price
- How this changes as new power sources come online:
- The importance of storage in future GB Power Strategy
One thing to take away
Don’t use this past month as a reason to think that renewables are a bad thing. These sorts of events are expected.
The most underappreciated thing about the GB Power Market
How vastly complex it is; this conversation only scratches the surface – plugging in your device and paying your bill is only the first percent of what’s going on.
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