On Monday, energy prices rose as the UK switched to gas due to the lack of wind and the cold snap.
On Monday morning, energy prices rose as the UK was hit by a lack of wind due to the ongoing cold snap.
Parts of the #UK will continue to be beset by snow and ice on Tuesday – with the potential for the country to experience the coldest night of the year for a second day running. @metoffice spokesman Oli Claydon said there will be heavy snow in some places again on Tuesday. https://t.co/TDYeMYUVj2 pic.twitter.com/bIdMYR0GEq
— Share_Talk ™ (@Share_Talk) December 12, 2022
According to grid.iamkate.com, prices for wholesale energy rose to PS1,650/MWh Monday. This is far higher than the yearly average price at PS200/MWh.
Richard Lum, co-chief investment officer at VH Global Sustainable Energy Opportunities suggested that this was a sign of the UK’s over-dependence on renewables.
Lum said: “The dangers of the UK’s overreliance upon wind and solar are reflected in the recent rise in electricity prices as the adverse weather affected supply.
“Presently coal and other fossil fuels dominate the energy mix to compensate for any shortages in renewable output.”
According to RenewableUK, the UK has almost 28,000MW of wind power capacity. This is more than half of Sunday’s demand for roughly 37,000MW. However, this can only be accessed when wind speed is less than 12-14 km/h.
Europe’s lack of wind has forced countries to turn to more expensive, non-renewable sources of electricity generation. France requested that the UK halve its scheduled exports Monday morning.
#UK power prices hit a record high. As of this morning, coal was providing more power (1.27GW) than wind (1.11GW). The price for power at 5-6pm, typically around the time of peak power demand each day, passed an all-time high of £2,586 a megawatt-hour. pic.twitter.com/fXZy6eX3A5
— Share_Talk ™ (@Share_Talk) December 12, 2022
National Grid ESO called two Drax-owned coal-fired power plants on Sunday evening. They were not decommissioned but kept in reserve to serve as winter reserves.
Both were subsequently rescinded.
After Centrica warned that the nine-day supply of UK gas storage was inadequate, it reopened the North Sea Rough facility to increase national capacity.
The government’s energy price guarantee will protect consumers from price increases. This subsidises household bills.
