Utility Week

UTILITY WEEK | 26TH JANUARY - 1ST FEBRUARY 2018 | 5 10GW A record-breaking 10GW was generated in the UK on 17 Janu- ary, when wind speeds of more than 80kph were recorded. 20yrs The costs of self-generating and storing power could be the same as buying it from an energy pro- vider by 2022 in Europe, 20 years ahead of the US, new findings from EY Global have revealed. ELECTRICITY Smart charging 'key' to the grid coping with EVs Smart charging will be the key to integrating electric vehicles (EVs) on to the power system, and will improve the economics of renew- able power projects, according to a report out this week from Aurora Energy Research. Currently, most EVs are plugged into the grid in the even- ing when their owners get home from work, but smart charging would see EVs charged at off-peak times and times that optimised grid usage. Aurora's report, The E-Mobility Revolution: Impacts on the GB Power System and New Utility Business Models, said there could be ten million EVs on UK roads by 2035. This would increase overall electricity demand in the UK by 19TWh per year, or 6 per cent. If all these vehicles were charged at one time in the evening, it would require an additional 3GW of gen- eration capacity. Smart charging would remove the need for more generation capacity and expensive grid reinforcement by incentivising EVs to be charged at other times. Because this would boost off-peak power demand, this would also improve the economics of wind power generation, increasing prof- itability by around 2 per cent. WATER Severn Trent prosecutes second restaurant Severn Trent has prosecuted a second restaurant for blocking sewers with fat, oil and grease, polluting a nearby watercourse. In only the third case of its kind to be brought in the UK, SCE Catering Limited, trading as Saf- fron Cottage in Ford, Shrewsbury was ordered to pay the maximum fine. As the company pleaded guilty, it resulted in a total fine, including costs of £9,266 at Telford Magis- trates' Court on 17 January. Saffron Cottage admitted to "fat used in cooking being put down the drain and into the sewer" where it coagulated and caused the blockage. Severn Trent said the "huge blockage" resulted in the sewer overflowing into a local watercourse, causing pollution. "The beneficiaries of the high cost of energy are lots and lots of vested interests so I'm not surprised that each particular vested interest doesn't like a particular bit of the report that will attack the economic rents that they get" Professor Dieter Helm hit back at critics of his energy costs review. CAPTURE PRICE IN WHOLESALE MARKET WHEN BOTH POLICIES ENACTED MARKET SHARE OF WATER RETAILERS, JANUARY 2018 70 60 50 40 30 20 10 0 2024 2025 2028 2030 2032 2034 2036 2038 2040 In its review of the third quarter of 2017, MOSL – the market operator for the non-household water retail market – said switching had increased from Q2 levels, with more than 30,000 switches processed. This brings the total number of switches in the market to more than 91,000. The five largest national retailers account for more than 80 per cent of the total number of supply points served by national retailers. Analysis by Aurora Energy Research has concluded that £48 to £49 per mega- watt hour (2012 prices) would be the appropriate strike price for a "zero- subsidy" Contract for Difference for an offshore wind farm. The figure is based on a forecast of the average "capture price" for offshore wind in the wholesale market over a 15-year contract. The equivalent figure in 2016 prices is £53 to £54 per megawatt hour. £/MWh, real 20167 Affinity for Business Source for Business Water2business Business Stream SES Business Water Everflow Water Plus 37% 21% 18% 6% 6% 7% Wave Castle Water 3% 1% 1% Forecast offshore wind capture price 15-year zero subsidy CfD price

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