Power stations are in line to receive increased payments to avert an energy shortage following a second alert issued within a short span of time.
The recent heatwave has led to a surge in demand as households and businesses utilize air conditioning and electric fans to combat the heat, while the calm weather has reduced power generation from wind farms.
Another significant factor contributing to the situation is the high temperatures in Europe, preventing the UK from relying on electricity imports.
The National Energy System Operator (NESO) has issued a new alert for power stations to boost output between 7pm and 10pm on Friday evening. This follows a previous request on Wednesday during the same timeframe, resulting in a reported windfall of £10 million for owners.
Gas currently accounts for about 27% of Britain’s energy supply, with solar closely following at 26% and wind at 18%, as of early Friday.
NESO’s announcement, known as an electricity margin notice (EMN), highlighted a potential 446-megawatt shortfall between expected demand and supply. The EMN is a signal to the electricity market to ensure a safety margin between power demand and available supply.
According to a NESO spokesperson, tight margins on the electricity system are expected due to the extreme temperatures affecting Great Britain and Europe. The EMN is a routine tool to prompt market participants to make additional generation capacity available, without indicating an imminent risk of electricity supply shortage.
Concerns primarily revolve around sourcing power during the peak evening period rather than a sharp increase in demand. Data from NESO indicates that the UK still relies on imports to fulfill approximately 13% of its energy needs, with power stations in other countries also facing increased demand.
The heatwave affecting western Europe has led to record-high temperatures, prompting temporary shutdowns of nuclear power stations in France to comply with temperature limits.
