Seasonal electricity capacity drops to a seven year low

In National Grid’s 2014/15 Winter Outlook electricity margins are shown to have decreased, with the average cold spell margin expected to be 4.1 per cent, a figure attributed to planned generator closures, breakdowns and new plant not coming online as quickly to replace them.

In response, National Grid said it is finalising contracts with Littlebrook, Rye House CCGT and Peterhead CCGT power stations to provide additional reserve under the Supplemental Balancing Reserve.

Together with the Demand Side Balancing Reserve that National Grid said it has already contracted, these will provide an additional 1.1GW of de-rated capacity to that assumed available in its base case, increasing the de-rated margin from 4.1 per cent to 6.1 per cent.

Gas, however, is said to be in a strong position this winter with supplies, storage and network capacity well in excess of anticipated maximum demand.

In a statement, Cordi O’Hara, director of Market Operation said: ‘The electricity margin has decreased compared to recent years, but the outlook remains manageable and well within the reliability standard set by government.