The National Energy System Operator (NESO) warned on Tuesday for the second time in two weeks that Britain is facing a system margin shortage of about 1.88 gigawatts (GW). This warning comes especially during peak consumption hours between 15:00 and 23:00.
Details of the NESO Warning
NESO has issued a power margin announcement to signal the electricity market. This announcement indicates that in the short term, the operator is seeking a greater safety margin between electricity demand and available supply. However, this announcement does not mean there is a risk of power outages, and Britain's electricity system remains secure.
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Decrease in Wind Power Generation
Wind power generation in Britain is expected to significantly decrease on Tuesday, with forecasts indicating that this generation will be 40 percent lower than the latest predictions for the week and will account for only about 25 percent of the average wind power generation this year. This decrease will lead to greater reliance on gas-fired power plants for electricity supply.
Given the forecasted decrease in wind power generation, electricity prices on Tuesday for delivery between 19:00 and 20:00 have risen above £530 ($400) per megawatt-hour (MWh). This price increase is over 50 percent compared to similar prices in Monday's auction, which occurred before the reduction in wind power generation forecasts for Tuesday evening.
The Role of Wind Power Generation in Energy Supply
Last year, wind power generation accounted for nearly 30 percent of Britain's total electricity supply and regularly provides a significant share of electricity generation at suitable times. Given the current challenges, NESO is seeking to establish a greater safety margin to meet Britain's energy needs.
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