UK Grid Operator Warns of Tight Power Margins

The UK power system faces a margin shortfall of 1.4 gigawatts (GW) on Monday evening local time, the National Energy System Operator said in a routine precautionary notice. During the spring and the summer record heatwaves, the National Energy System Operator (NESO) has issued electricity margin notices several times, requesting power generators to increase the availability of electricity in case of low wind speeds. “NESO has issued an Electricity Margin Notice for today’s evening peak period. This is a routine and precautionary operational tool, there is no risk to customer electricity supplies and Great Britain’s electricity system remains secure,” the grid operator said early on Monday. Such notices are usually issued to encourage market actions to increase the energy system margins. An ELECTRICITY MARGIN NOTICE is used to send a signal to the electricity market. It highlights that, in the short-term, NESO would like a greater safety cushion, or margin, between power demand and available supply. Such notices do not signal that blackouts are imminent or that there is not enough generation to meet current demand, the grid operator noted. The reduced margin is expected to end on the night Monday to Tuesday when wind power generation is set to spike and relieve the system margin shortfall. Wind power supplied nearly 30% of the UK’s electricity last year, and regularly provides about this share of total power generation when wind speeds are favorable. When wind speeds are high, the UK sees wind producing 44% of its total electricity, but gas becomes the backstop in case of low wind speeds. The integration of growing shares of wind and solar power generation in the electricity system will require billions of pounds in investments to expand and overhaul grids to be able to handle the renewable energy sources without forcing generators to curtail output. By Tsvetana Paraskova for Oilprice.comMore Top Reads From Oilprice.comGermany's Gas Storage Sits at 57%, but VNG Says Winter Supply Is CoveredTotalEnergies Targets 3% Annual Oil and Gas Growth Through 2030European Gas Prices Rally on U.S.-Iran Stalemate