Battery Storage in Great Britain: Mid-Year Roundup with Shaniyaa Holness-McKenzie and Robyn Lucas

A lot of what the industry talks about is the connection delays and issues with actually getting connection agreements, but what we're also seeing is that there's been delays at the d and o stage. So actually connecting to the grid, we've had some big announcements.

We've got the TCE works, Horns One gigawatt, four gigawatt hours.

Yes. That's mad.

What's the latest from the benchmark? How much is fleet earning?

We've hit the hundred pound per megawatt hour mark, which we haven't done so far this year.

This is, like, significantly different to what you would expect. Yeah. Right? I guess we've also seen a few more longer actions for constraint reasons.

It's key to unlocking in further investment Yep.

In the sector because we need to see batteries being used for constraint purposes because we know how big a problem this is gonna be going forward.

Hello, everybody, and welcome back to Transmission. In today's episode, Modo Energy's director of data science, Robin Lucas, and market analyst, Shania Holness Mackenzie, take a look at what has changed for the battery landscape in Great Britain over the first six months of twenty twenty four. The conversation covers progress on build out of storage revenues and the driving factors behind them, market changes, and much more. As always, if you are enjoying the podcast, please hit subscribe so you never miss an episode, and give us a rating wherever you listen. Let's jump in.

Hi. It's Shania here on today's episode of the Transmission Podcast. We're gonna be getting into the first six months of twenty twenty four, and I'm joined with the lovely Robin.

Hello, Shania. Very excited to get into today's conversation, talking about the first six months of this year because we are currently on fourth of July, election day. Oh my goodness. We'll delve into that a little bit later.

Yeah. Give you a little roundup of where battery energy storage is in the UK at the moment and what's changed over the last six months. Yes. So currently, we are, what, four gigawatts, five point two gigawatt hours?

Yeah. Yeah. So how has that build out changed over the last six months?

Well, we've definitely seen a slowdown in build out rates, in these first six months of the year, especially compared to twenty twenty three. It was a record breaking year. Each quarter in twenty twenty three, we saw an average of four hundred megawatts come online.

By this time in the year last year, we had seen almost eight hundred megawatts come online, whereas this point in the year now Three hundred megawatts.

Just over three hundred megawatts come online.

Less than half of what we got to this time last year.

Yeah. We're at about three hundred and twenty megawatts.

And was most of that in q one?

Yes. So in q one, we got one hundred and eighty four megawatts, and then q two, we're looking at about a hundred and thirty megawatts, hundred and forty megawatts.

Wow. Big slowdown. Yeah. What do you think is driving that?

So last year at the end of last year, I was reaching out to people to find out what it is that's kind of causing delays. So to be frank, we've been seeing a lot of delays. A lot of what the industry talks about is the connection delays and issues with actually getting connection agreements, but what we're also seeing is that there's been delays at the DNO stage. So actually connecting to the grid, anecdotally, I've heard that there's a lot of, setbacks there with regards to, like, timelines and actually getting your battery, even once it's up and running, getting it actually connected.

Kinda like the final g ninety nine testing that's taking a bit longer.

Yeah. And then there's been also issues with equipment as well, and just if equipment isn't working, how long it's taken to actually get replacements and things like that. Some people have mentioned delays of up to, you know, potentially two years with regards to some of the equipment that they've had issues with.

But the hope is that these are short term delays, and that things will start to fix themselves.

And especially looking at the next quarter, so q three, by the end of the quarter, we'd hope that we'd see all those units which are expected for the capacity market year come online. So I'm hoping that next quarter will be a nice big a big quarter. I think there's, like, over one gigawatts in the pipeline.

So it's a come online q three.

Yeah. But in terms of a projection, it's probably more around your three hundred and sixty Okay. To three hundred and ninety megawatts. I'd probably expect to see, next quarter. Yeah.

I'm really hoping that because the capacity market is that thing where especially because those first few months are where you kinda make your most revenues as well because It's always a big drive to get back to online for the winter.

Yeah. And we're actually we could potentially see a big two hundred megawatt asset come online before the end of the year as well because that one has a stability pathfinder contract as well, which actually started should have started earlier this year, but I don't believe that there's any penalties for a late start on that one. Right. So there's less incentive there, I guess, to get it online. But with the capacity market starting, they do have a capacity market agreement for this year. So far, we've only had one one hundred megawatt unit where the the whole unit itself is a hundred megawatts.

The Dolomans as well.

Yeah. So this will be our next big one.

Yeah. I guess this is a trend we're continuing to see. Right? Bigger sites are coming online.

Yeah. We've got even this quarter or the in the past six months, we've had some big announcements. We've got the Tease Works battery is about one gigawatt. We've got Horns One gigawatt, four gigawatt hours. Yes.

That's mad.

Yeah. So as and that's the other thing as well. As well as seeing bigger power ratings, we're also seeing more higher durations and and yeah. So it'll be interesting to see how these batteries do as well.

Yeah. We also had, really interesting site this past appear yeah. Past quarter, actually. Hornsey, is a big collocated asset with the wind farm that we we did some forecasting work for. So it's a three hundred megawatt, six hundred megawatt hour site, which went through FID.

We've also got Sellerhead, which is another three hundred megawatt site, being announced recently, and also, an SSE site, which is Monk Fryston.

I hope I'm saying that right.

Fryston.

Yeah. Three hundred and twenty megs. So, really, the number of bigger sites is really ramping up, which means that, you know, you have one of those coming online in a quarter, and suddenly you're getting to, you know, the kind of build out that we've been seeing so far with all of the smaller sites.

Yeah. By by twenty twenty seven, almost half of or potentially half of the capacity online will come from units that are at least a hundred megawatts.

Wow.

So, yeah, we're we're gonna start seeing some Very good for the build out.

Yeah. We were potentially gonna so there's one gigawatts worth of power that could have come online this year from just three sites alone. Mhmm. And two of those sites, we were expecting to see in the last quarter, but, I mean, it probably was a bit optimistic to think that we might see, like, a four hundred megawatt site come online. So we might not see those again until twenty twenty six or something like that. Yeah. But, yeah, it coulda it coulda been a a big one this quarter the last quarter, but, yeah, it didn't happen, unfortunately.

I guess you kind of frame it in the wider picture of what's going on. And, obviously, twenty twenty three, we had really low revenues. Mhmm.

And those have picked up a little bit. We'll talk about this a bit more in a second, but they have picked up a bit more in the last few months. But that coupled with, CapEx numbers for batteries. So I don't know what stage all of those big sites would be, but if they're placing their orders now versus six months ago for the sales, they would get significantly cheaper prices now perhaps. Yeah.

So it might be worth it might be people waiting a little bit longer to see where CapEx numbers fall to because, you know, they seem to keep dropping.

And that means that even with lower revenues, because your CapEx is lower Mhmm. Your IRRs and your hurdle rates, we're actually seeing go up Okay. Which is which is really good for this sector.

That's good. One thing as well to comment on with regards to maybe the what seems like a slow a slow half of the year.

One thing that I did notice in but then like, mostly the end of last year and a little bit at the beginning of this year is that we're seeing I guess you could call them stealth batteries where maybe we don't necessarily see them in the frequency response markets or the balancing mechanism, but they are already up and running. They're generating revenue.

So, potentially, there could be some assets like that which came online in the past six months, but from I can't see them, but they are generating We know that they're in line for the conversation, but we're just waiting to see them in the actual day to see them in the So, potentially, that that one hundred and forty megawatt number could go up.

So, yeah, we'll see. We'll watch this space.

I guess other things to talk about in the last six months in terms of big project announcements is not on new sites coming through, but actually announcements on route to market agreements. So we heard a really big deal being announced with Gresham and Octopus, which is a tolling agreement on half of Gresham's portfolio.

So that is fourteen of their projects, with a kind of indicative number of fifty six thousand pounds per megawatt per year Okay. Of the tolling number. So what that means, is Gretchen will receive a fixed price of, that kind of ballpark number Mhmm.

For all of the sites that Octopus is sort of leasing off them. And they don't see any of the upside, but they have that secure long term revenue, which, given kind of recent revenue figures, is really good for them and really good for Octopus. It's kind of giving Octopus a massive jump into the market with a a fairly sizable portfolio.

I think in total, it's, like, over five hundred megawatts once they get all of the sites, which will happen over six months or so, which, you know, previously, Octopus haven't really been in the market in a big way.

They've been operating the Emirates battery, which is a I wanna say two, but it's actually slightly bigger than that. A, you know, sub five meg battery that sits in the Arsenal stadium, which is super cool pet project of mine back in the day. Mhmm. But, yeah, this is obviously giving them a huge, like, jump into the market.

So it'd be very interesting to see, you know, what they're what they're doing with those first few sites because I should think that they are far more focused on the balancing mechanism. Whereas a lot of Gresham's assets historically have been historically have not been in the BM, whereas Octopus' focus is very much on kind of flexibility that the system operator has visibility of, via the BM. So, yeah, big one to watch out. And we recently put in fact, today's podcast episode as we're filming this was with, Ben Guest and and Quentin talking that through.

So do check out that if if you want any more information on that deal because it's really just a sign of the market maturing, these much bigger deals, much more kind of secure long term revenue streams outside of kind of traditional National Grid type contracts.

And just to also add to that in with regards to, build out and maybe people doing things, differently. So Gresham House as well also, announced that they're gonna be upgrading a lot of their units, the durations of a lot of their units. I think they're trying to add an extra three hundred and thirty megawatt hours to their sites Yeah. By the end of the year.

So, yeah, there's a lot of ways people are kinda getting around some of the issues that we're seeing on the initial earlier sites that are one hours and one hour in duration and probably now less than one hour, which starts to be quite a limiting factor, they're gonna repower those sites.

And we heard recently that the cost of putting an extra megawatt hour on a site is actually pretty low. It was, like, a hundred dollars or so, which is certainly less than I would have thought if I'd have picked a number out the air. So, yeah, really, I think the message is CapEx is falling in this quarter. Okay. So coming on to revenues, what's the latest from the benchmark? How much is fleet earning?

So it wasn't looking good at the start of the year. It wasn't looking great at the start of the year. Let's say that.

January and February, if we include the capacity market, we were seeing around thirty seven thousand pound, per megawatt per year, which, yeah, wasn't For January, February, it should be, like, the highest months.

Yeah. And Quite quite quite painful, actually.

Yeah. And as I mentioned with the capacity market, there's prices can change month not that they change, but prices are relative to the month that you're in. So the in January and February, they actually account capacity market actually accounted for more of the proportion of revenues that batteries were receiving, versus more recent months.

I guess it's it was mainly driven by fairly flat wholesale prices Yes. Quite a lot of wind. It was quite warm. Yeah.

We had quite a lot of capacity on the system. There wasn't any scarcity, really. Not not not much low margin. Yeah.

Okay. So January and Feb, pretty painful. Moving on to March.

So in March, we did see revenues go up. Cool. We had the introduction of the balance in reserve. This also helped to push frequency response revenues up. We also saw an increase in wholesale spreads.

So in general, things things things were looking better That's good. In March, which was good.

Then in April, we had that period of high wind.

Oh, so this is like, the few days in April that everyone's spouting about being Yes. Batteries. Yes.

Because we saw a lot of negative pricing, which is obviously very good for batteries. They can work on those spreads. So we went up to about fifty six thousand pound per megawatt.

Okay. So jumping up from thirty seven in January and February. I'm going up to six.

That's a pretty pretty big jump.

Yeah. And, again, that is included in capacity market as well.

In this at this time, it ended up making up a lower Okay.

So it's genuinely, like, really quite significant wholesale spreads largely from negative pricing driven by high wind Yes. Which is definitely something we will see going forward. Yep.

Then May, unfortunately, the wind went down, and so the revenues went down with it.

It's a super interesting thing that we're seeing now. There's real clear correlation between actual battery revenues and the wind.

Yeah. There was a chart that I put out, sometime I think it was near the end of April or maybe at the beginning of of May, which literally showed the, the best index tracking against wind generation. And it was it was pretty much in line, which we hadn't really seen before because, of course, wind generation can go up. We might not see that increase in in revenues.

But in that period of time, it really was tracking I think, yeah, let's dig into why that is.

So and then it's June?

Yeah. May, we we were down, and then June, we went back up. So we went to we were about forty nine, thousand pound per Okay. Per megawatt per year at the moment.

So gas prices went up. We also saw some more high wind high wind generation, which meant that spreads were really good because you've got the high wind generation bringing prices lower, but then you've also got the gas prices increasing. So yeah. So those wholesale spreads came in again. Actually, I think we've seen the highest wholesale spreads of the year. We've we've hit the a hundred pound per megawatt hour mark, which we hadn't done so far this year. So, yeah, so Like, Yeah.

Yeah. Okay. This is, like, significantly different to what you would expect. Yeah. Right? Your highest wholesale spreads of the year are in June.

Yeah. That is not what you you imagine as, like, a peaking plan.

So it'll be interesting to see how that Yeah. Changes throughout the year.

I think we're we're expecting the the the class the gas prices, sorry, to continue to Yeah.

The gas the gas curve is I was just looking at it. It's been going up, a little bit over the last few weeks.

So be interesting to see how that continues going forward.

Yeah.

So June revenues are a little bit down on April, but, you know, pretty significant for a summer month and some, like, fundamental changes in what's driving these spreads. Yep. So, really, we're seeing masses of wind generation driving negative pricing.

Mhmm.

The increases in gas prices. So over the last month, gas prices on the forward curves have gone up, like, ten percent or so, presumably driven by, you know, geopolitical events in the world, uncertainties around elections, outcomes of, you know, a lot of, far right politics coming in, whether it's in France or what's gonna happen in the American election. Obviously, the UK election as well is causing a whole load of uncertainty along with a couple of wars. Mhmm. So we're really seeing quite significant changes in kind of the fundamental makeup of the market, and that, it turns out, is good for battery revenues because we're seeing the biggest spreads. I think that's amazing actually that summers summer prices, we're seeing the highest spreads of the year so far, and that is something we're gonna see going forward, really driven by negative pricing.

Okay.

So what major market changes have we seen in the last six six months?

Yes. I'd say one area in particular that's seen a lot of big changes has been the balancing mechanism.

Right. Awesome. We really needed to see some changes there.

We do. Yes. We did. And in particular, the first one we had was the open balancing platform, which initially came around at the end of twenty twenty three, so in December. But I'd say for batteries, it really kicked off in January.

Okay. So o open balancing platform, that is a program of works within the control room to try and update some of the IT systems Yeah. Specifically around manual dispatch within the control room for, utilizing sort of smaller, more flexible assets. So I think the the launch was with the bulk dispatch tool. So this was where you could send out lots of instructions which were via an algorithm as opposed to kind of people clicking on buttons.

Yeah. So that was one of the big limitations that batteries were experiencing within the balance in mechanism previously. You've got lots of them. They're quite small compared to other technologies that are within the balance in mechanism, So it meant that it was a lot more difficult for them to be dispatched.

Hence why, historically, we haven't really seen very strong revenues in the BM.

Yes. Exactly. But then, this OBP was put in, and we've got bulk dispatch now, which really kicked off at the beginning of January.

As a result, it really did help to fix efficiency within the battery zone, so within between different batteries.

We saw less of a reliance on, bigger units, which maybe historically were easier to dispatch because you you're getting a lot more power out of them.

So a lot We were seeing handful of batteries get used quite a lot in the BM. Yeah.

And with the launch of bulk dispatch, we're now seeing lots more batteries get used perhaps for small actions.

Yeah. Yeah. So we saw the number of actions increase.

We saw dispatch rates for for smaller units increase. Maybe for some of the bigger units, it might have come down a little bit. But overall, we saw a bit more of a uniform uniform uniformity. I don't know if that's the word.

So quite a bit.

Became a bit more uniform.

As do you see, like, things like price Yes. Having much more of an impact on your dispute rate than you perhaps historically saw, which is great. And, overall, the volumes did go up a bit.

Yeah. We saw we saw a little bit of an increase, but the main thing that it proved was that the it works.

Okay. So so overall, we saw dispatch rates go up a little bit Yeah.

But no major kind of golden ticket to high battery revenues in the BM just from Bolt Dispatch. No.

But But Soon after, in March, we had the introduction of the thirty minute rule.

Woo hoo. What does that mean? Yes. So previously, within the balancing mechanism, batteries were operating off of this fifteen minute rule Mhmm. Which was to summarize, it essentially meant ESO can know within in the next fifteen minutes, how much power do you have available to dispatch?

Okay.

And the issue of that is that we saw sixty nine percent of volume in the balancing mechanism comes from dispatches which last up to thirty minutes. So by being limited to this fifteen minute, this fifteen minute rule, it meant that batteries weren't able to to have that.

So before we go, like, before we get started with any kind of price, any kind of location, already you're only accessing, like, thirty percent of the total volume available in the BM just because of this fifteen minute, rule. Okay. So we had the introduction of this thirty minute rule, which actually has made quite a big difference to Yeah. Dispatch volumes.

Yeah. So previously, before the rule was introduced, the dispatch rate was maybe at about four percent, five percent. Yeah. And then now we're seeing it closer to ten, eleven percent more regularly.

So, yes, it's been it's been pretty good for for batteries.

I guess we've also seen a few more longer actions for constraint reasons.

Yes. So that's the other thing is that it also opens batteries up to this kind of constraint management aspect of the balancing mechanism, particularly in Scotland where we've got a lot of high wind generation. So units in the north of Scotland in particular where the wind generation is highest, but is constrained at the b four boundary.

Mhmm.

We have seen an increase in battery dispatches there.

This was, this is something that ESO have been specifically trying to to improve is utilization of of not just batteries, but of these small units within the, within constraints. And I think that there's a lot of work going into improving constraint management in general.

So hopefully, we'll see some things come out over the next couple of weeks. Really key, particularly thinking about how many batteries we now have Yeah.

On the b six and also, you know, on the b four in in northern Scotland, is key to unlocking further investment Yeah. In the sector because we need to see batteries being used for constraint purposes because we know how big a problem this is gonna be going forward. Yeah. So that's awesome.

I guess it kind of comes hand in hand with this whole new service which we touched on earlier, which is balancing reserve.

Yes.

So balance reserve is, procured at the day ahead, and it's for each individual settlement period.

And it's so that the control room can be assured of having a certain amount of flexibility, when they need it. And the prices in that service on the on the negative reserve, it's got a cap of one pound fifty. So we're not seeing it you know, there's no major revenues coming through the negative reserve, and the positive is only going up to, like, three pounds or so. So not a massive increase in terms of the revenue stack.

However, what it's enabling is this kind of very new strategy we've seen in the last six months, which is combination of balancing reserve and really high BM utilization. Yes. And we're seeing we're seeing some sites, particularly, as we've just been saying, like, where, location is more critical, that they're getting bids and offers and then, like, a lot of bids and offers within a single settlement period or within a couple of settlement periods so you can kinda manage your state of charge. And you see that, actually, your BN revenues on some days are really quite high Yeah.

Which is great.

Yeah. For sure. Like, it's it's so, yeah, another reason why that thirty minute rule was introduced was to support batteries being entered into balancing reserve.

And, yeah, despite the prices being not particularly high at the moment, it still has really helped to to kind of give a boost to to to the battery revenues overall.

Yeah. And I guess it's worth pointing out that it's not purely batteries in the market.

The price is often being set by gas pickers Yeah.

Which is different compared to the other ancillary services that we see.

Yeah. One thing which might be interesting to note is that there's already kind of talks about, I guess, you could call it reform within balancing reserve. Yep. Yeah. Because, yeah, so we're seeing maybe people are participating in a way that they didn't expect.

So for example, if you were to have several settlement periods of reserve, or you're expected to have reserve in in several settlement periods. You might price yourself higher in the balancing mechanism so that you're not used.

And, yeah, it they're like, oh, I'm not sure if that's Yeah. The way that you should do it.

These are commercial entities, and they're gonna try and get as much money from these strategies as possible, but it might not be exactly what the control room would want Yes. Obviously. Yeah. So maybe we'll see some some changes to that service as it matures.

I mean, inevitably, with new services, you always get a little bit of kind of volatility in terms of prices and, behaviors, let's say. Yes. The other thing to add is over winter, National Grid have said that they're gonna procure a lot more of it, and it's really tied to how much wind is gonna be online. So particularly during gusty periods, we might expect up to two gigawatts of balancing reserve, which actually could be quite significant in terms of the battery fleet.

Maybe moving on to what the winter recently published winter outlook is saying. So in terms of this winter, what kind of wholesale spreads do you think we're gonna see?

Yeah. So based on ESO's expectations of of system conditions and with regards to what generation we might assume the grid, initially, you might expect that, spreads would will remain the same as what we saw last winter because we're not expected to see much difference in margins, just based on the amount of, generating capacity and the amount of demand that they're expecting.

However, when you actually look into the generation stack and what different types of technology we're gonna see, that's when you start to introduce a bit of volatility, and maybe we actually will see, much bigger spreads this winter than we saw last winter. So this bigger reliance on on wind generation Yep. Could cause, a lot more periods of of low prices, negative prices.

We've also got potential if we're relying on nuclear a bit more as well, they had some outages last winter. If we see those again, that again could could cause prices to potentially go up to to accommodate for this. And then as, I don't actually, I'm not sure if you've mentioned this yet, but we have seen carbon prices, gas prices going up. So if we see that continue as well, that could kind of push Yeah.

Push the carbon prices up a little bit.

That would be interesting to see negative prices because we've got masses of wind Mhmm.

And then really high peak prices because the gas is really high Yeah.

Which that would be great for batteries.

So, on the generation side, we had Ratcliffe retiring Yes. Between last winter and this winter. So that's one gigawatt less of margin.

Mhmm. And it might be seen as a a fairly low cost plant compared to, say, gas peakers, which are filling in some of that gap. Yeah. So I think we'll probably see a little bit more scarcity pricing even though the the margin is is similar.

Yeah. Okay. So coming on to any major policy movements in the last six months Mhmm. I believe we had some pretty fruity capacity market result.

Yes. So in the capacity market, we could potentially see some updates to derating factors Mhmm. Which could be very interesting following the recent t four auction.

So These were the ones in March?

Yeah. So, yeah, Feb February, they closed.

Okay.

So, yeah, so we had the t four auction for delivery year twenty twenty seven twenty twenty eight, in which fifteen batteries with a duration of nine hours won I love this so much.

I love this so much.

One one contract, which was quite interesting because I didn't see anything about nine hour systems.

It's not economical to build nine hour systems.

So after some, investigating, it was discovered that for quite a lot of them, probably all of them, they were entered with higher durations, because they were able to essentially bypass some of the, impacts of derating factors that we've seen recently. So derating factors have been going down.

However, while the the the, I guess, increase in derating factor between units of zero point five hours of duration up to about eight point five hours of duration has been linear. Mhmm. There's, like, one big jump between eight point five and nine hours. Right. And if you entered as a nine hour unit, you effectively saw about a thirty six percent increase in your contract value, compared to entering Azure nameplate duration.

Thirty six percent higher.

So that's what I'm saying. Facing duration derating factors of, like, eleven percent. That makes a huge difference.

Yeah.

So so we might see some reforms because that's probably not what the policy in terms of.

And not just to get around that, but also the fact that battery duration factors probably were lower than they should have been. Mhmm. And there's a lot more, operational data available now.

There was also recommendations from the the panel of technical experts.

So altogether, the ESR are in a much better position to, design de rating factors for batteries.

And yeah. So we could we could potentially be seeing some some increases which would affect the next sale of auctions, so your t one for twenty twenty five, twenty twenty six, and t four twenty twenty eight, twenty twenty nine.

Okay. Awesome.

That probably brings us on nicely to have a very quick roundup of Rhema as well. So the second consultation of Rhema was launched and closed in the last six months, so between March and May.

We did a fairly in-depth podcast on this a little while ago, myself, Wendell, and Ed. So do check that out if you are super interested in Rema and what the, review of electricity market arrangements looks like. But the headlines are on the kind of, wholesale price. So looking at whether we have a national wholesale price as now or forming that into a locational price either with Zonal or Nodal. This was one of the big headlines of the first consultation.

Nodal is out, and Zonal is still on the table as well as the national price.

Central dispatch is still an option in some, kind of situations in the wholesale reform. So this is when the system operator would be dispatching all of the assets, which is typically what you see in a nodal market. You see it in Australia and and a lot of the American markets. I think it's probably unlikely to happen, and we're more likely to stay with self dispatch given a lot of the conversations that we heard through lots of the Rhema events. So it'd be interesting to see what the consultation comes up in that respect.

The other thing that was kind of talked about quite a lot was around the length of settlement periods and the length of, gate closure. So we had some it looks like we might get shorter settlement periods, which is better suited to things like renewable intermittent generation. You can better it's a more efficient market dispatch essentially because you have more accuracy about actually what your renewables will be delivering if you shorten down the market, you know, the kind of timelines that you're looking at. However, a shorter gate closure so currently, gate closure is an hour. That means that everyone has to tell National Grid an hour ahead of time what they're going to do. That doesn't look like it will get shortened because of the IT systems in the control room not being kind of able to cope with ensuring that the system will be balanced with just an hours with less than an hour's timeline, which kind of limits some of the positives of having shorter settlement periods.

There's also a bunch of reforms in the capacity market and for the CFD, which will come through looking at kind of minima and deemed, deemed CFD payments, and minima in the quest market. So do go check out that podcast.

And, yeah, it'll be interesting to see what the results look like. Hopefully, we'll get those in the next six months.

Perfect.

And just to wrap up, I think we can't not mention the election.

Yes.

So we're filming this on the fourth of July. So we are likely to have a new government this time tomorrow. So I think they might have a completely different stance on all things net zero. Yeah. Yeah.

I think it'll be interesting to see kind of how what what a new government would bring to the energy industry, particularly, to be frank, if it is Labour, what their, is it Great British Energy?

Great British Energy. Yeah.

What what that means and what that would would provide.

So, yes, it'll be interesting to see what what changes Yeah.

Change at all. Yeah. Exactly. There's some pretty, to be fair, actually, in the Tory manifesto as well, but some quite optimistic scenarios that they've put out in terms of the amount of solar on the system and wind on the system and how we actually manage to put that on the in the ground by twenty thirty.

Okay.

But hopefully it will give just a massive boost to our industry because, the last six months last year or so and particularly after a fairly weak cop, you know, you do see quite a lot of impacts of that on the ground, and it'll be great if we actually have a bit more oomph behind us as an industry and actually getting to net zero like we all know we need to do Yeah. As quickly as possible.

But I guess we should we can wrap it up there.

It's been a really interesting conversation, actually. A lot of things have happened over the past six months, and I reckon we'll see a lot more changes to come over the next six months as well. And thank you for listening. Remember to like, comment, and subscribe, and let us know if there's anything that you like to hear on the podcast too.

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