UK Power Stations Are Raising The Profit Despite Of Limited Supply




On Monday night, there will likely be a short-term shortage in the UK as low wind speeds, and cold temperatures increase demand and decrease supply. 

National Grid instructed two coal units held in reserve to be prepared to generate tonight evening if necessary. Later, it revoked this request.

The Met Office has issued yellow weather alerts for snow and ice across the UK until Thursday due to the snowfall in London. Northwest Europe is anticipated to experience chilly weather the whole week.

The International Energy Agency said that the coming year might be “an even sterner test” as Europe must restock its gas supply without much or any help from Russia.

Even though additional wind power is anticipated this evening, the UK’s power shortage has eased a little. However, prices are still relatively high. 

National Grid is counting on nothing else going wrong. The equilibrium might be upset once more if any unforeseen journeys or station needs to go offline suddenly occur.

German energy firms reaffirmed their cautions against imposing a natural gas price limit in Europe, claiming that there were many hazards associated with such a plan. 

According to Kerstin Andreae, chairperson of the energy advocacy organisation BDEW, gas imports might be redirected to other markets without a quota, jeopardising Europe’s supply security. 

Energy ministers are scheduled to meet on Tuesday in Brussels to try to reach an agreement after weeks of meetings have left disagreements between member states of the European Union on the subject.

In the UK’s balancing market, where National Grid adjusts supply and demand, Vitol SA gets compensated £4,000 per megawatt-hour to generate electricity.

The grid operator was forced to accept an exorbitant price from its traders to keep VPI’s Rye House gas-fired power plant operating after it declined to make itself available on the wholesale market. Supplies are so scarce that yesterday’s auction saw prices set a record for 5–6 p.m.

A study from energy advocacy organisation BDEW claims that since September, German homes and small businesses have reduced their gas usage by 18% due to a milder autumn’s lower demand for heating. 

Gas usage is down 8% when adjusted for those above-normal temperatures, indicating that behavioural adjustments helped lower energy consumption.

To be prepared to produce power tonight evening if necessary, National Grid cancelled its request for two coal units. The reserve would have been used for the first time since it was contracted in the summer.

According to IAEA director Fatih Birol, the European energy situation will deteriorate even worse in the upcoming year. He continued the likelihood of there being no Russian gas is relatively high, and LNG supplies are at an all-time low.

The good news is that it appears like Europe is “off the hook” for this winter, according to Birol, who shared the stage with von der Leyen during a press conference. “2023 might very likely be considerably harder than this year.”

About the author, Awais Rasheed

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