At a glance
Prices
- An uptick of 43% in average clearing price from May to June, with more instances of high (>£5/MW/h) clearing prices than the previous month.
- Day-to-day price volatility remains from May, with price swings driven by National Grid Electricity System Operator’s (NG ESO) strict aversion to overholding Short Term Operating Reserve (STOR) capacity.
Volumes
- Procured volumes remain constant at 1312 MW (avg.), in line with NG ESO's procurement targets – note this excludes 400 MW of firm long-term STOR contracts enduring to 2025.
- Gas reciprocating engines were the dominant technology in day-ahead Short Term Operating Reserve (DA STOR) during July, accounting for 39% of firm STOR capacity. Pumped storage saw an increased share of awarded contracts, up 5% from May.
Service cost
- Total service cost to NG ESO for DA STOR availability was £1.4m. This increased in line with the average clearing price, with contracted volume remaining constant.
Market share
- Centrica secured the highest revenues from DA STOR, taking 18% of the total revenue with their 245 MW site in Peterborough, which secured contracts every day in June.
- Individual site revenues across June ranged from £1075/MW to £42/MW, driven largely by the number of contracted days.
