Power stations are in line to receive increased payments in order to avert an energy shortage following a second alert issued within a short span of time. The ongoing heatwave has led to a surge in demand as homes and businesses turn to air conditioning and electric fans for relief, while wind farms are producing less power due to favorable weather conditions. Additionally, the scorching temperatures in Europe have limited the UK’s ability to rely on electricity imports.
The National Energy System Operator (NESO) has called for power stations to boost their output between 7pm and 10pm on Friday as a proactive measure. This request follows a similar directive issued on Wednesday during the same timeframe, which reportedly resulted in a £10 million windfall for operators. Gas currently accounts for around 27% of Britain’s energy supply, with solar not far behind at 26% and wind at 18%.
The NESO issued an electricity margin notice (EMN) late on Thursday, indicating a potential 446-megawatt shortfall between expected demand and supply. The purpose of the EMN is to signal to the electricity market the need for a greater safety margin between power demand and available supply, emphasizing that blackouts are not imminent.
A NESO spokesperson highlighted the tight margins in the electricity system for the upcoming evening, attributing it to the extreme temperatures affecting Great Britain and Europe. The EMN is a routine tool to encourage additional generation capacity from market participants, without indicating an imminent risk to electricity supply.
Concerns have been raised about power availability during peak evening hours rather than a spike in demand. Data from NESO reveals that the UK still relies on imports to meet about 13% of its energy requirements, with power stations on the continent facing supply challenges due to increased demand. The heatwave across western Europe has led to record-breaking temperatures, prompting temporary shutdowns of nuclear power stations in France to comply with safety limits.
