Power prices in the U.K. spiked, according to Will Mathis and Eva Brendel of Bloomberg, after a market warning was issued due to low wind output and high heating demand caused by a cold snap. Wind generation dropped to 3 gigawatts, with gas plants compensating for the shortfall. This underscored the challenges of relying on wind energy without adequate backup as temperatures across Europe plunged and power demand surged. They write:
Power prices jumped after the UK’s grid operator issued a market warning for this afternoon as declining wind output crimps supply just as plunging temperatures boost demand.
The three-hour notice period is set to begin at 4 p.m. London time when there’s an insufficient buffer between predicted supply and demand, the National Energy System Operator said. Intraday power prices rose as high as £1,071.46 ($1,321.32) per megawatt-hour at 4.30 pm London time on Wednesday, according to Epex Spot SE data.
The warning was issued by the grid operator “using operational and engineering judgments” and gives the market more time to adjust than an automatic alert four hours in advance. It’s one of several issued this winter and highlights the risk of building out wind turbines without sufficient back up for days when it’s dark, cold and windless. […]
A sharp drop in wind generation just as colder weather causes an increase in demand for heating is putting pressure on the power system. Wind output is forecast to dip even lower than expected this afternoon, falling to about 3 gigawatts.
Gas is already picking up the slack, with the country’s plants generating over 24 gigawatts of power, short of the record of nearly 28 gigawatts set in December. Average temperatures are forecast to be just above freezing Wednesday, well below the 30-year normal for this time of year. […]
Temperatures could fall to the lowest this winter, reaching -15C (5F) in locations with lying snow in Scotland or northern England on Thursday night, according to Chris Almond, deputy chief forecaster at the Met Office.
The cold snap is taking hold across Europe. German power demand hit an 11-month high on Wednesday morning, exceeding 73 gigawatts. That was about 10% higher than the forecast. To meet the extra load, Germany is switching to more dirty coal and oil. Hard coal generation is the highest since November, according to Entso-e.
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