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This is quite a good explanation for the record wholesale prices in January.
A few factors but mostly seems to be lack of available capacity.
""Although low wind and high demand both contributed to the high price events (and wind generation was lower than average across the month), our analysis shows that wind and demand conditions were within the range that we’d expect to see in a typical January. The main cause of the high prices was the unavailability of a number of plant, largely from plant nearing the end of their life (nuclear and coal), or plant that were unavailable due to events not accounted for in the CM calculation (Calon going into administration).""
www.lcp.uk.com
A few factors but mostly seems to be lack of available capacity.
""Although low wind and high demand both contributed to the high price events (and wind generation was lower than average across the month), our analysis shows that wind and demand conditions were within the range that we’d expect to see in a typical January. The main cause of the high prices was the unavailability of a number of plant, largely from plant nearing the end of their life (nuclear and coal), or plant that were unavailable due to events not accounted for in the CM calculation (Calon going into administration).""
What caused January’s record high electricity prices and is this the new normal?
In this blog, LCP's Chris Matson and Rajiv Gogna explore how January’s outturns across wind, demand and plant unavailability fared against the expected distributions, what the main drivers of the price spikes were, and what this means for the future.
www.lcp.uk.com
