ME2042 Lecture 6

Electricity Trading Sustainable Electricity Generation

History Prior to 1990 entire industry was state owned Central Electricity Generating Board (CEGB) 12 area boards in England and Wales .Electricity Trading .

History 1990 – Privatisation Industry split into Generators (eg PowerGen.Electricity Trading . National Power) Bulk Transmission (National Grid Co) Local Distribution Companies Supply companies Settlements The Electricity Trading Pool .

2001 Electricity Association National Grid Company To REC’s From Generating Companies Electricity Trading Pool .Electricity Trading – History 1990 .

2001 Whole process overseen by OFFER • Produced concept of: • Pool purchase price • Pool selling price (published 24 hrs ahead) • Uplift • Half hourly trading Competition was phased in over several years Completely free market by 1994 OFFER introduced NFFO to support renewables development • • • .Electricity Trading – History 1990 .

2001 New entrants as suppliers Eg Virgin.Electricity Trading – History 1990 . PowerGen Prices fell in real terms New generation based on CCGT (gas) Small growth in renewables and CHP Opportunities for large uses to trade in the Pool Growth of Energy Services .

5 hour “gate” NFFO replaced by ROC’s .Recent Developments New Electricity Trading Arrangements – NETA introduced in 2001 Objective to further liberalise the market Most trading now through contracts Controlled by Elexxon Introduced Balancing Mechanisms 3.

NETA .Issues Very recent changes (White Paper) to improve renewables and CHP Industry fragmented – issues of foreign ownership System integrity still a monopoly (National Grid) .

IEE Power Engineering Journal.5 GW 7.2 GW 0. pp 68-74 .0 GW 4.0 GW 21 GW 25 GW 10 GW *Costs of Sustainable Electricity Generation.Sustainable Electricity Generation See paper by Newton & Hopewell* 2020 generation mix Hydro Barrage Tidal Wind o/s Renewables CCGT Nuclear Storage 1.45 GW 6. April 2002.

org Energy charity – good background info .natenergy.uk UK Gov website on energy www.co.References www.thecarbontrust.

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