Summer Outlook - National Grid ESO
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Summer Outlook 2019 The Summer Outlook Report is an annual publication delivered by National Grid each spring. It presents our view of the gas and electricity systems for the summer ahead (April to September). The report is designed to inform the energy industry and support their preparations for this summer and beyond.
Welcome Summer Outlook 2019 Thank you for reading our this new format will enable you As always, we would really Summer Outlook report. As we to interact with the Summer welcome your feedback so we look forwards to this summer, we Outlook report in a way that can ensure our documents are are confident that that there will meets your needs. as useful as possible. Email us at be sufficient energy available to marketoutlook@nationalgrid.com, meet demand, and that we have From 1 April 2019, the Electricity or you can join the conversation the right tools in place to manage System Operator (ESO) will be using social media via LinkedIn, operability in all scenarios. a new legally separate company Facebook and Twitter. that will carry out our ESO function This year, we have responded within the National Grid Group. to stakeholder feedback by trialling Whilst this will provide focus to our Fintan Slye a new format for this document. electricity activities, facilitating whole Director UK System Operator We want to ensure that the Summer system outcomes is also one of our Outlook is as clear and succinct key roles as an ESO going forward. as possible, without losing the richness of the data that underpins As we tackle the key energy our analysis. challenges ahead of us, we expect to see increasing interactions In order to do this, we have between gas and electricity markets produced a concise executive and operations. For this reason, briefing pack. This aims to quickly documents such as the Summer put across key messages from and Winter Outlooks will continue the Summer Outlook, through to be produced on a dual fuel interactive graphics. Accompanying basis and we will continue to this, we have produced an in-depth draw out and explore whole data workbook, with additional energy system themes in this analysis that we know is valued year’s Summer Outlook. by our stakeholders. We hope that
Overview Summer 02 Outlook 2019 Executive summary 1 We are confident that there will 3 Whole system thinking be sufficient supply available to is becoming increasingly meet energy demands for the important as long term coming summer. We anticipate trends of decarbonisation and similar gas and electricity demands decentralisation drive increased to summer 2018. interaction between the gas and electricity transmission 2 systems. In the short term this is primarily due to gas fired We have the right tools and electricity generators balancing services available to manage the intermittent output of operability for the coming renewable electricity generators. summer, particularly during periods of low demand, or when access requirements increase for delivery of key maintenance work. 4 We anticipate no additional operability challenges for this coming summer as a result of the UK’s planned exit from the EU. We have tested our planning assumptions in a broad range of scenarios and via engagement with industry. These scenarios fall within our normal contingency planning.
Supply and demand Summer 03 Outlook 2019 Executive summary We are confident that there We do not think it is likely that Key statistics, electricity will be sufficient supply available we will need to instruct inflexible to meet energy demands for the generation to reduce output Electricity transmission peak demand 33.7 GW coming summer. We anticipate in weeks when demand is low. Electricity transmission minimum demand 17.9 GW similar gas and electricity However should this be necessary demands to summer 2018. we have the tools to do so. Minimum available generation 39.8 GW Electricity Demand – weather Gas Demand – during the summer corrected demand seen on the gas fired electricity generation Key statistics, gas transmission system at both a peak becomes a more significant and minimum level will be similar component of GB demand, unlike GB gas demand 25.2 bcm to last summer, as the recent trend winter when domestic heating of increasing solar generation has dominates. This drives profiles to Total gas demand 36.1 bcm slowed. Generation that is not become more variable in line with connected to the transmission renewable generation. We also Above demand forecasts are weather corrected. network (such as the majority anticipate greater levels of transit of solar generation) reduces gas than last summer in response transmission demand as more to market conditions. demand is met locally. Gas Supply – we anticipate Electricity Supply – we will be increased liquefied natural gas able to meet demand and our (LNG) deliveries compared to last reserve requirement at all times summer. Whilst this could provide throughout summer 2019 under competition for other supply all interconnector scenarios. sources, it is likely to result in greater transit flows to the continent.
Operational outlook Summer 04 Outlook 2019 Executive summary We have the right tools and services available to manage operability for the coming summer, particularly during periods of low demand or when access requirements increase for delivery of key maintenance work. Key messages – electricity Key messages – gas • Low transmission demand and • Managing reactive power and • Although the need for • We are expecting increased high volumes of low inertia voltage levels will continue to maintenance remains high, volumes of LNG supply, which generation can cause operational be challenging. We have tendered we anticipate no major risks affects flows of gas across GB. issues over the summer. for the provision of (Enhanced) to National Transmission As LNG supply is less predictable Reactive Power services for System (NTS) access for the than UK Continental Shelf supply, • We will need to take day-to-day summer 2019 and 2019/20. planned summer schedule. we must be prepared to operate actions to manage system the network in increasingly frequency in times of low • Work continues to move smaller • During summer months, gas fired complex or new configurations demand. Usually this will generation to new protection electricity generation becomes at relatively short notice. involve working with flexible settings, which will reduce the a dominant component of gas generation to reduce supply. need to manage system stability demand. Its variability results using operational tools. in a need for close management of system pressures. We are reliant on timely and accurate physical notifications to minimise operability risks.
Whole energy system Summer 05 Outlook 2019 Executive summary Whole system thinking Figure 1 is becoming increasingly important as long-term Load factor of renewable and gas fired electricity generation summer 2018 • Output from gas fired 60% generation mirrors the output trends of decarbonisation and from renewable generation, decentralisation drive increased increasing when renewable interaction between the gas and 50% output decreases and electricity transmission systems. vice versa. Load fatcor (percentage) 40% An example of this is how increased renewable generation • The resulting volatility in 30% output required from gas on the electricity system, coupled fired generation also means with a gradual move away from 20% the gas demand to these coal, has a direct impact on the sites is more variable. operation of the gas system. 10% • In turn this variability has an 0% impact on how we configure and operate the NTS, 01/04/2018 08/04/2018 15/04/2018 22/04/2018 29/04/2018 06/05/2018 13/05/2018 20/05/2018 27/05/2018 03/06/2018 10/06/2018 17/06/2018 24/06/2018 01/07/2018 08/07/2018 15/07/2018 22/07/2018 29/07/2018 05/08/2018 12/08/2018 19/08/2018 26/08/2018 02/09/2018 09/09/2018 16/09/2018 23/09/2018 30/09/2018 07/10/2018 14/10/2018 21/10/2018 28/10/2018 increasing flexibility requirements within Renewables Load Factor Gas plant Load Factor and across days. • The NTS compressor portfolio is increasingly relied upon to manage this variability in operational pressures.
EU Exit impact Summer 06 Outlook 2019 Executive summary We anticipate no additional operability challenges for • In all scenarios trading will • Should the UK leave the EU continue, and electricity will flow. with no deal, cross border trading this summer as a result of It is expected to flow from lower of energy would take place the UK’s planned exit from to higher priced markets as is outside of the single market the EU. We have tested our the case at the moment. framework, i.e. under World Trade planning assumptions in a Organisation rules for the majority broad range of scenarios and via engagement with industry. • In a no deal scenario, the of countries, where no free trade mechanisms of cross-border agreement has been negotiated. These scenarios fall within our gas trade are not expected Furthermore, as is the case now, normal contingency planning. to fundamentally change. flows on both gas and electricity Gas shippers mostly purchase interconnectors may also be Potential impacts concerning energy and capacity separately, impacted by fluctuations in interconnector trading are and there would be no change currency exchange rates. discussed below: from this in the event of a no deal exit from the EU. The UK’s • Currently when electricity Transmission System Operators is traded over interconnectors (TSO’s) expect to have continued with connected markets access to the Prisma gas in the EU a day ahead of real capacity trading platform1 time, this is done using implicit to allocate capacity at arrangements. This makes interconnection points. trading faster and more efficient. In the case of a no deal exit from the European Union, these arrangements would no longer apply and interconnectors would have to move to fallback arrangements. 1 https://platform.prisma-capacity.eu/#/start
Key publications from the System Operator Summer 07 Outlook 2019 Executive summary System Operator publications The Operability Strategy Report System Operator publications 2019 The Summer Outlook Report considers the current operability Network Options Assessment Winter Outlook Report is just one of the documents challenges the ESO faces and how January October within our System Operator these are likely to change in future. The options available to meet Our view of the gas and suite of publications on the future reinforcement requirements electricity systems for the on the electricity system. winter ahead. of energy. Each of these documents For gas, these issues are considered aims to inform the energy debate in the Gas Ten Year Statement and and is shaped by engagement Future Operability Planning Summer Outlook Report Electricity Ten Year Statement with the industry. publications. We share aspects Spring November of our analysis with the industry Our view of the gas and electricity The likely future transmission systems for the summer ahead. requirements on the electricity The starting point for our analysis during the development of these system. is the Future Energy Scenarios documents to make sure that the (FES). This document considers proposed solutions meet the needs the potential changes to the of our stakeholders. Operability Strategy Report Gas Ten Year Statement demand and supply of energy Summer 2019 November Our view of future electricity How we will plan and from today out to 2050. system needs and potential operate the gas network, improvements to balancing with a ten-year view. The network and operability services markets. changes that might be required to operate the electricity system Winter Review and Consultation Future Operability Planning Future Operability Planning 2016 Future Operability June November/December Planning 2016 in the future are explored in the UK gas transmission A review of last winter’s How the changing energy Electricity Ten Year Statement, forecasts versus actuals and landscape will impact the System Operability Framework an opportunity to share your operability of the gas system. and Network Options Assessment. views on the winter ahead. National Grid plc National Grid House, Warwick Technology Park, Gallows Hill, Warwick. CV34 6DA United Kingdom Registered in England and Wales No. 4031152 www.nationalgrid.com Future Energy Scenarios System Operability Framework Future Energy Scenarios SystemOperability Framework 2015 Future Energy System Operability July Regular updates Scenarios Framework 2015 UK gas and electricity transmission UK electricity transmission A range of plausible and How the changing credible pathways for the energy landscape will future of energy from today impact the operability National Grid plc National Grid House, Warwick Technology Park, Gallows Hill, Warwick. CV34 6DA United Kingdom Registered in England and Wales No. 4031152 out to 2050. National Grid plc National Grid House, Warwick Technology Park, Gallows Hill, Warwick. CV34 6DA United Kingdom Registered in England and Wales No. 4031152 www.nationalgrid.com of the electricity system. www.nationalgrid.com
2 Summer 08 Outlook 2019 Electricity In this section we present our current view of electricity demand for summer 2019. We also provide an electricity supply and operational view for the coming summer. Our operational view is based on historic performance and data provided to us by generators. We use this data to present a picture of operational surplus for each week of summer and to determine the actions we may ask generators to take during periods of low demand. In addition, our Europe and interconnected markets section explores interconnector behaviour, and provides market insights into the impact to GB of pricing and renewable generation in neighbouring countries.
Electricity demand Summer 09 Outlook 2019 Table 1 Key messages Weather corrected transmission system demand for summers 2016, 2017, 2018 and normalised transmission demand for 2019. In July 2018, we saw the lowest Our analysis suggests that this transmission system demand downward trend will slow this Year Summer Daytime High summer (TSD) on record at 16.3 GW summer as the growth of minimum (GW) minimum (GW) peak (GW) (actual demand based on actual distribution connected weather including station load). generation, mainly solar 2016 17.8 22.7 36.3 This continued the downward photovoltaics (PV), decreases and 2017 17.6 21.2 34.4 trend in demand that we have we anticipate minimal reductions seen on the transmission system in underlying demand. Therefore 2018 18.0 21.0 33.9 since 2011, which has largely been we expect the weather corrected 2019 (forecast) 17.9 20.8 33.7 due to an increase in distribution demand in summer 2019 to be connected generation. broadly similar to summer 2018. •M inimum summer demand is expected to be 17.9 GW. • D aytime minimum demand is estimated to be 20.8 GW. • P eak demand for the high summer period is expected to be 33.7 GW. Further information can be found in the data workbook.
Electricity demand Summer 10 Outlook 2019 Summer system demands Periods of low demand can have Weekly peak demand Summer minimum demands 200 MW lower than last year’s an impact on how we operate the Figure 2 shows the weekly peak Historically, lowest demand on the weather corrected demand. transmission system. As a result, demand for summer 2018, and transmission system has occurred it is important that we understand our forecast for 2019. Our peak overnight. However, growth of Furthermore, weekly overnight the minimum levels of demand demand for the high summer renewable generation has meant summer minimum demand for 2019 along with the peak demand that period between June and the that lower demands may occur in is expected to be 100 MW lower we can expect to see during the end of August is 33.7 GW. This the daytime. As Figure 3 shows, than last year’s weather corrected summer months. is 200 MW lower than last year’s daytime summer minimum demand demand, at 17.9 GW. weather corrected demand. for 2019 is expected to be 20.8 GW, Figure 2 Figure 3 Weekly peak demand for summer 2018 against our summer 2019 forecast (weather corrected) Summer minimum demands, 2018 and 2019 forecast (weather corrected) 45 30 44 29 43 28 42 27 41 26 40 25 Demand GW Demand GW 39 24 38 23 37 22 36 21 35 20 20.8 34 19 33 18 32 17 17.9 31 16 30 15 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Week number Week number High summer period Forecast peak 2019 Peak 2018 High summer period Weekly daytime summer minimum 2019 Weekly daytime summer minimum 2018 Weekly summer minimum 2019 Weekly summer minimum 2018
Electricity demand Summer 11 Outlook 2019 Daily demand profiles Daily demand profile Peak demand timings Figure 4 During the summer months, Daily peak demand is largely Daily hourly demand profiles from the high summer period 2018 solar generation has a more influenced by the amount of solar 40 prominent impact on demand radiation. For example, if the sun profiles. For a number of years, is shining all day, the peak demand 35 maximum solar generation is likely to occur either in the output has coincided with the morning between 8am and 9am 30 fall in demand after lunchtime. or after sunset. The daytime Demand GW 25 demands between 9am and Figure 4 shows the daily hourly sunset are suppressed by 20 demand profile from the high distribution connected generation 15 summer period in 2018. This helps (mainly solar PV). us to forecast the daily minimum 10 Typical summer minimum Potential minimum at times of high solar and daily peak demand timings 5 for the coming summer. 0 Minimum demand timings 0:30 2:30 4:30 6:30 8:30 10:30 12:30 14:30 16:30 18:30 20:30 22:30 24:30 Figure 4 suggests that the daily Time minimum demand is likely to occur Maximum and minumum demand range Average demand between 5am and 6am. Demand Daytime (solar generating) Sunrise/sunset then increases until 8am where it remains relatively flat until 4pm. After this, it starts to increase for the evening peak in demand.
Spotlight Summer 12 Outlook 2019 Update on Network Innovation Allowance (NIA) projects 1 3 Following our NIA project with the Finally, our partnership with Installed solar PV capacity is now over Alan Turing Institute for Data Sheffield University reached another Science, we developed and milestone during the winter of 13 GW and continues to have a significant implemented a new machine- 2018/19, with the release of an effect on transmission system demand. learning based national solar power updated set of regional solar PV model in September 2018. This is outturn estimates. These have We have continued to enhance our ability the first time that such technology enabled the production of regional to predict solar generation accurately, has been used in our suite of solar PV forecasts, which we forecasting tools. Compared to utilise to strengthen our studies and during the last 12 months we saw the previous models, this new tool of network planning and constraint implementation of a number of projects: has reduced our mean absolute management during 2019. solar forecasting errors across all Real time solar PV generation timeframes by approximately 33%. output can be accessed here We now have an enhanced suite of www.solar.sheffield.ac.uk/pvlive. solar forecasting models, including one from our NIA project with These projects are serving to Reading University. improve the ESO’s management of system balancing and 2 network constraints in view Also in September 2018, our NIA of the significant impact of project with the Met Office furnished solar generation. We continue an improved data-feed of short-term to explore and implement further forecasts of solar radiation, which initiatives to stay abreast of the is the key driver of solar power changing energy landscape, generation. The new values and balance supply and demand addressed the tendency to under- accurately and economically. forecast solar radiation, and therefore solar generation.
Electricity Supply, Summer 13 Outlook 2019 including operational view Figure 5 Key messages Weekly generation and demand summer 2019 54 52 50 48 46 39.8 GW Demand 44 42 40 38 GW Based on current operational We are able to meet normalised 36 data the minimum available transmission demand and our 34 generation is expected to be reserve requirement at all times 32 30 39.8 GW in the week commencing throughout summer 2019 under 28 10 June (no continental all interconnector scenarios, 26 interconnector flow scenario). including throughout the shoulder 24 months of April and September. 22 20 01 08 15 22 29 06 13 20 27 03 10 17 24 01 08 15 22 29 05 12 19 26 02 09 16 23 30 07 14 21 April May June July August September October Date Max normal demand (including full Ireland export) Reserve requirement Assumed generation with no continental IC flows Assumed generation with base continental IC flows Assumed generation with high IC continental flows *Please note data on the BM reports website does not include interconnector imports/exports and is largely unadjusted (i.e. does not include derating or breakdowns – with the exception of wind where this is accounted for via the assumed load factor).
Electricity Supply, Summer Winter 14 Outlook 2019 >1 Executive summary including operational view >2 Our role >3 Electricity Operational view: >4 •In the summer months, power • T his operational view doesn’t include stations carry out planned any generator market response close Gas to real time – for example if market maintenance as there is typically >5 lower demand and lower electricity prices increase, generators may Glossary prices than in the winter. move planned maintenance. For the • To plan for the summer, the ESO latest OC2 data and operational view, see the BM reports website2, uses OC2 data submitted weekly by generators, which includes planned updated each Friday. maintenance dates. We also apply • ased on current economic B a breakdown rate to this data, to conditions, we expect some coal account for unexpected generator power stations to temporarily shut outages or restrictions close to down during summer 2019. This has real time. already been indicated by the loss of • This is then modelled against forecast availability of two 500 MW coal fired units. Power stations in this position normalised transmission demand (including station load), may become available if the price plus a reserve requirement of 900 increases until it is profitable to MW and a range of interconnector generate, or if our control room flows to provide a weekly view of approaches them with enough the anticipated operational surplus notice. Furthermore, some plants (see previous figure, based on data may decide to close if it is no longer provided on 14 March 2019). economical to run. A 2,000 MW coal fired unit has announced closure from the end of September 2019. • urther detail on available generation F for the summer, breakdown rates etc. can be found in the data workbook. 2 https://bmreports.com/bmrs/?q=help/about-us
Operational view continued Summer 15 Outlook 2019 Key messages Based on current data we expect – curtailing flexible wind farm that during some periods this output at a national level via summer inflexible generation the Balancing Mechanism output plus flexible wind output or via direct trades will exceed minimum demand – trading to reduce the level (see Figure 6) of interconnector imports. All actions will be carried out We therefore anticipate that in economic order, with cheaper we may need to take actions actions taken first. At a local such as: level wind may also need – requesting pumped storage units to be curtailed due to local to increase demand by moving constraints or other issues. water back to their top lakes – (this increase in demand is shown by the pink demand line in Figure 6)
Operational view continued Summer 16 Outlook 2019 In the summer, there is a significant To help us understand actions Figure 6 reduction in transmission system we may need to take this Generation and minimum demand by week, summer 2019 demand, as there is less summer, we model levels of 32 requirement for heating and lighting, inflexible generation, and inflexible 30 and a higher output from distributed generation plus flexible wind output 28 26 generation such as solar. against forecast minimum demand 24 each week (see Figures 6 and 7). 22 Throughout the summer, the ESO 20 needs to keep the demand and These forecasts are updated weekly 18 supply of electricity in balance at and can be found on our website3. GW 16 all times. To do this, the system 14 still needs to be able to respond As discussed previously, minimum 12 10 to the largest generation or demand demand is likely to take place in the 8 loss. We also need to maintain early morning, or in the afternoon 6 positive and negative reserve levels when output from distributed 4 to account for forecasting errors generation is at its highest. 2 and unanticipated reductions 0 in generator availability close 01 08 15 22 29 06 13 20 27 03 10 17 24 01 08 15 22 29 05 12 19 26 02 09 16 23 30 07 14 21 28 April May June July August September October to real time (this is discussed Date in further detail in the operability Nuclear Inflexible BMUs (eg CHP) Plant total providing requlating reserve Inflexible hydro I/C imports after trades Plant providing voltage support Inflexible wind toolbox section). Flexible wind Minimum demand Minimum demand inc. pumping 3 https://www.nationalgrideso.com/balancing-data/forecast-volumes-and-costs
Operational view continued Summer 17 Outlook 2019 Figure 7 Key messages Inflexible generation and minimum demand by week, summer 2019 32 Based on current data, we do 30 not expect inflexible generation 28 output alone to exceed minimum 26 demand in summer 2019. 24 22 20 18 parameters from generators, and • The ESO can undertake a number GW 16 inform participants of a risk of 14 of actions if supply risks being instructions to inflexible 12 higher than demand. Usually generation. To date a limited 10 these involve working with flexible number of local NRAPMs have 8 generation to reduce supply. 6 been issued, and no national • If however these actions are not NRAPM has been issued. 4 sufficient to bring supply and You can read more about 2 0 demand into balance, further NRPAMs on our website4. 01 08 15 22 29 06 13 20 27 03 10 17 24 01 08 15 22 29 05 12 19 26 02 09 16 23 30 07 14 21 28 action may need to be taken. • ased on current data, we do B • In the longer term the number of April May June July Date August September October actions we take as an electricity Nuclear Inflexible BMUs (eg CHP) Inflexible hydro I/C imports after trades not expect inflexible generation system operator is likely to Plant total providing requlating reserve Plant providing voltage support Inflexible wind output alone to exceed minimum increase as we continue to see Minimum demand Minimum demand inc. pumping demand in summer 2019. reduced demand at the summer • If however demand levels fall close minimum (with more distributed to the level of inflexible generation generation capacity), and fewer on the system, we can issue a flexible generators running national or local Negative Reserve overnight and in the afternoon. Active Power Margin (NRAPM) notice. This is a request to encourage more flexible 4 https://www.nationalgrideso.com/sites/eso/files/documents/NRAPM%20Forecasting%20Note.pdf
Europe and interconnected markets Summer Winter 18 Outlook 2019 >1 Executive (Electricity) summary >2 Our role >3 Electricity Context Figure 8 Interconnector capacities. >4 This figure shows interconnector capabilities, not expected flows. Gas There are 5 interconnectors As renewable generation continues connecting the GB electricity to grow in both GB and connected >5 market with the Netherlands, markets, relative prices will be Glossary Belgium, France and Ireland. largely influenced by the weather, The direction electricity flows on which impacts demand and the these is determined by price, with amount of available renewable electricity flowing from cheaper generation. Flows of electricity areas to more expensive areas. may also be impacted by network constraints, and these will be Moyle (0.5GW) managed by collaboration between the ESO and interconnectors. Ireland EWIC (0.5GW) Britned (1GW) Netherlands NEMO Link IFA (2GW) (1GW) Belgium France
Europe and interconnected markets Summer Winter 19 Outlook 2019 >1 Executive (Electricity) summary >2 Our role >3 Electricity A development since last summer In addition, the NEMO link Table 2 was the launch of the Integrated interconnector, connecting GB Planned and current interconnector outages, summer 2019 >4 Gas Single Electricity Market (ISEM) and Belgium, successfully went in Ireland on 1 October 2018. live for commercial service on Interconnector Planned outages Current outages >5 This integrated the all-island 31 January 2019. (full capacity) (resulting capacity) Glossary (Ireland and N Ireland) and European electricity markets, Interconnectors may undertake France: IFA (2 GW) 01–26 April (1 GW) None which was expected to help deliver planned outages over the summer, 04–06 June (1 GW) increased levels of competition or experience fault outages. A table 17–28 June (1 GW) and lower prices. of current fault outages and planned The Netherlands: 13–17 May (0 GW) None outages for each interconnector is BritNed (1 GW) 16–20 Sept (0 GW) listed in table IC-0. Belgium: Nemo 23 Sep–4 Oct (0 GW) None (1 GW) Ireland: EWIC 07–13 May (0 GW) None (0.5 GW) 21 May (0 GW) 28 May (0 GW) 19–21 Aug (0 GW) N. Ireland: Moyle 12 – 20 June (0 GW) None (0.5 GW)* *Moyle currently has less commercial capacity, subject to TEC values: currently 307 MW for import and 450 MW for export.
Spotlight Summer 20 Outlook 2019 Review of interconnector flows summer 2018 Key messages Imports Exports As anticipated, GB day ahead As expected we also saw electricity prices remained above net exports of electricity on prices in connected European interconnectors to Ireland markets for most of summer 2018, during peak, switching to leading to net imports on these imports overnight. interconnectors.
Spotlight Summer 21 Outlook 2019 Review of interconnector flows summer 2018 Figure 9 shows GB and European On some occasions from Figure 9 Day ahead baseload prices, summer 2018 day ahead electricity baseload September 2018 onwards, Belgian prices for summer 2018. As can prices peaked at much higher levels 120 be seen here, the GB day ahead than GB (circled) due to outage Belgian prices peaking due baseload price was consistently extensions on the Belgian nuclear 100 to nuclear outage extensions higher than connected markets for fleet. Once these were resolved, most of the summer leading to net Belgian prices dropped back close 80 imports into GB. to previous levels. £/MWh 60 40 20 0 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 /0 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 / 8 /1 8 18 02 03/1 09 04/1 16 04/1 23 04/1 30 04/1 07 04/1 14 05/1 21 05/1 28 05/1 04 05/1 11 06/1 18 06/1 25 06/1 02 06/1 09 07/1 16 07/1 23 7/1 30 07/1 06 07/1 13 08/1 20 08/1 27 08/1 03 08/1 10 09/1 17 09/1 24 09/1 01 09/1 08 10/1 15 10/1 22 10/1 29 10/1 05 10/1 1/ / 26 Date UK summer baseload French summer baseload Dutch summer baseload Belgian summer baseload
Spotlight Summer 22 Outlook 2019 Review of interconnector flows summer 2018 Table 3 shows interconnector flows In the daytime, the picture Table 3 Interconnector flows summer 2018 during the daytime, overnight and at changed for the Moyle and EWIC peak times (5pm to 8pm) interconnectors that moved to for summer 2018 (Nemo is not export for more daytime hours. IFA Moyle Britned EWIC shown as it was not operational). At peak, the distinction between Daytime (7am to 7pm) All interconnectors were importing continental European and Irish for most of the overnight periods, interconnectors is again clear, with Import 95.6% 20.7% 88.0% 32.7% particularly those connected to the former importing power from Floating 0.0% 0.3% 5.5% 13.6% continental Europe. Europe for almost all peak hours. Export 4.4% 79.0% 6.5% 53.7% Total 100.0% 100.0% 100.0% 100.0% Overnight (7pm to 7am) Import 97.1% 62.8% 92.5% 71.8% Floating 0.0% 0.1% 4.1% 12.3% Export 2.9% 37.1% 3.4% 16.0% Total 100.0% 100.0% 100.0% 100.0% Peak hours (5pm to 8pm) Import 99.4% 19.9% 94.3% 38.9% Floating 0.0% 0.1% 3.1% 12.7% Export 0.6% 80.0% 2.6% 48.3% Total 100.0% 100.0% 100.0% 100.0%
Europe and interconnected markets Summer 23 Outlook 2019 (Summer 2019) Figure 10 shows that forward prices In previous years, there were Key messages import. Weather variations will for baseload electricity for summer some periods when IFA exported also affect flows at all times, 2019 in GB are still higher than the from GB to France driven by including peak. corresponding prices in the French, lower available French generation Dutch and Belgian markets. due to nuclear outages. Planned Therefore we expect to see similar French nuclear outages for this import/export patterns as last year are lower than previous 2019 summer. NEMO link, as a new interconnector, is expected to summers, so are not expected to significantly affect interconnector Forward prices for summer 2019 are expected to remain higher Exports behave similarly to Britned as their market prices and physical flows. Further detail can be found in the data workbook. in GB than continental Europe. We expect GB to export to capabilities are similar. We therefore expect there to Northern Ireland and Ireland during be net imports of electricity peak times on the Moyle and Figure 10 on interconnectors from EWIC interconnectors. This may Day ahead baseload prices, summer 2019 continental Europe to GB be reversed to import with high 65 for most of the summer. wind output in Ireland or during 60 periods of system stress. The availability of coal fired generation 55 in Northern Ireland will also impact 50 flows on the Moyle interconnector. £/MWh Imports 45 40 We expect imports into GB at 35 peak times via the IFA, BritNed and Nemo Link interconnectors 30 although occasionally not at full 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 1/ 1/ 1/ 1/ 1/ 2/ 2/ 2/ 2/ 1/ 1/ 1/ 1/ 1/ 2/ 2/ 2/ 2/ 3/ /1 /1 /1 /1 /1 /1 /1 /1 /1 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 01 08 15 22 29 06 13 20 27 03 10 17 24 31 07 14 21 28 07 Date UK summer baseload French summer baseload Dutch summer baseload Belgian summer baseload
Europe and interconnected markets Summer 24 Outlook 2019 (Summer 2019) In addition, only two of the four Forecast flows at peak (5pm to Figure 11 Figure 12 coal-firing units in Northern Ireland 8pm) and overnight (7pm to 7am) Forecast interconnector flows at Forecast interconnector flows peak 5pm to 8pm, high import scenario overnight, high import scenario were awarded a 12-month contract are summarised in Figures 11 and by the Northern Irish SO to support 12, which show flows under a system stability and security of high import scenario, based on supply. Should other units close, historic breakdown rates (see data this may encourage more exports workbook for further detail). through the Moyle interconnector. 750MW 750MW 1,000MW 1,000MW 1,000MW 1,000MW 1,988MW 1,988MW Peak times 5pm to 8pm, import from Europe and Overnight, import from Ireland and Europe. export to Ireland.
3 Summer 25 Outlook 2019 Gas In this section we look at the projected demand for gas to cater for heating, industry, electricity generation and export needs. We explore the supplies of gas we expect to see this summer and the impact of global markets on both supply and demand patterns.
Gas demand Summer 26 Outlook 2019 Figure 13 Key messages Forecast gas demand profiles for summer 2019 – seasonal normal weather conditions 350 300 Peaks and troughs IUK outage relate to weekends EU export Renewables 250 and public holidays 200 mcm/d Total gas demand across the Gas demand for GB electricity network in summer 2019 is generation remains steady 150 expected to be greater than but, due to increased use in summer 2018 on a weather of renewables and gas/coal 100 corrected basis. This is due price spreads, presents a to an expected increasing variable profile of consumption. 50 flow of transit gas into Europe as prices drive greater volumes Another significant impact 0 of LNG to be delivered into on demand uncertainty 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep UK terminals. continues to be the effect Exports to Ireland Daily metered Date Storage injection IUK/BBL physical exports of weather on non-daily Electricity generation Non daily metered metered (NDM) demand.
Gas demand Summer 27 Outlook 2019 Table 4 1. In summer 2019, we expect 3. Gas demand for electricity Forecast total gas demand for summer 2019 and history for previous summers to see non-daily metered demand generation is expected to be slightly higher than last year, slightly lower than last summer, bcm 2014 2015 2016 2017 2018 2018 2019 aligned with seasonal normal as a result of lower overall actual actual actual actual actual weather forecast corrected weather conditions. Further electricity demand and increasing NDM1 9.9 11.3 11.1 10.4 10.6 11.4 10.8 information about NDM demand renewable generation. DM + 4.4 4.2 4.1 4.4 4.1 4.1 4.3 can be found in the data 4. Overall we expect total exports Industrial2 workbook. to Ireland over the summer period Electricity 9.2 8.3 11.6 10.5 10.3 10.3 10.1 2. Daily metered (DM) demand is to be largely the same as last generation3 expected to decline year on year, year, despite the decline of GB Total 23.5 23.8 26.8 25.3 24.9 25.7 25.2 mirroring the reduction in energy production from the Corrib field. Ireland4 2.7 2.8 1.7 1.6 1.6 1.6 1.6 intensive industries and energy 5. With increasing LNG in the global Export to 3.8 5.0 5.2 7.0 4.5 4.5 7.0 efficiency improvements. market, we expect to see gas Europe5 However, significant new continuing to be routed to where Storage 3.6 3.4 2.6 2.5 2.3 2.3 1.9 connections can slow that trend, the price is more attractive in Injection6 and this year we anticipate a Europe (See page 32). Total7 33.8 35.2 36.4 36.6 33.3 34.2 36.1 DM demand that is slightly higher 6. Overall storage injection this than last year. summer is expected to be lower than last summer as a result of the warm winter. (see page 29). 7 All totals include NTS shrinkage and will therefore not tally.
Europe and interconnected markets Summer Winter 28 Outlook 2019 >1 Executive (Gas) summary >2 Our role >3 Electricity Figure 14 Key messages IUK Export Flows >4 Gas IUK outage 2019 IUK outage 2016, 17, 18 Our projection for 2019 is an In recent years, IUK has closed 0 >5 increase in exports to Europe for maintenance during June. Glossary via the IUK interconnector This year, the maintenance window -10 in comparison to last summer. is planned much earlier, in April. -20 Export flow mcm/day -30 -40 The GB gas market is connected to Figure 14 shows export flows -50 Belgium by the IUK interconnector, in the last three summers, and and to the Netherlands via the BBL our projection for 2019 is an -60 interconnector. increase in export to Europe in comparison to last summer. -70 In recent years, gas has tended to 01 08 15 22 29 06 13 20 27 03 10 17 24 01 08 15 22 29 05 12 19 26 02 09 16 23 30 flow from GB to Belgium for most of This is the first year that IUK has April May June July August September the summer and from Belgium to not had all its flows covered by long 2015/16 2016/17 2017/18 Date 2018/19 predictions GB during the winter months term contracts. All of the existing through IUK. This trend is largely contracts expired at the end of Also this year, the BBL pipeline, Currently there is no firm exit driven by price differentials between September 2018. Currently about between Bacton in the UK and baseline capacity however, as GB and European markets, so 55% of export capacity is covered Balgzand in the Netherlands, has with any other site, non-obligated occasional days of import to GB by contract. Going forwards, indicated that it will make gas firm capacity could be made might be expected during the contracts are likely to be booked transportation possible in both available by National Grid in addition summer if prices dictate. It is on a much shorter term basis. directions from the summer of 2019. to interruptible. increasingly influenced by the availability of LNG being delivered to UK terminals.
Gas storage Summer 29 Outlook 2019 Figure 15 Key messages Increasing trend of day to day cycling 2,500 Injection and withdrawal both increasing 2,000 Injection and withdrawal (mcm) Storage Outage 1,500 1,000 Overall storage injection over We anticipate that significant 500 summer 2019 is likely to be lower storage injection is likely 0 than last year. This is because during the 2 weeks that the IUK 2014 2015 2016 2017 2018 of the relatively high level of interconnector is on outage. This -500 medium-range storage (MRS) outage is taking place earlier than -1,000 stock at the end of winter 2019, usual in the summer, and hence due to a milder winter. we expect to have higher stock -1,500 levels than are typical during the -2,000 We expect continued day-to- early summer months. day cycling into and out of Withdrawal Injection Lower withdrawal immediately following very cold weather spell in March 2018 (MRS) in summer 2019. With the closure of Rough as a We have seen an increasing trend seasonal facility and its subsequent of these sites being used for day- reclassification as a production to-day cycling, as shippers take field; the remaining storage in advantage of gas price swings GB is medium-range storage over shorter timescales. You can (MRS). This has increased in total see the increasing trend in Figure 15 volume over recent years. Storage behaviour can differ significantly across different years as a result of this price driven trend.
Summer Outlook 2019 Gas storage 30 Figure 16 MRS starts to fill when IUK shuts Total injection over the summer MRS stock levels down for maintenance. There is typically has a dependency on the no export route for the supplied level of MRS at the end of winter. 1,600 gas, so it goes into storage. The IUK MRS stocks are currently higher 1,400 outage is in April this year (earlier than last summer as a result of Sharp increase in stock than usual) and we expect that the mild winter (see Figure 16) 1,200 during IUK outage significant storage injection is likely during those two weeks of outage. MRS stock level/mcm 1,000 We therefore expect to have higher 800 stock levels than are typical during the early summer months. 600 Stock levels at the start of 400 summer depend upon how depleted they are at the end of the winter (e.g. low stock levels 200 following very cold weather spell in March 2018) 0 01 Oct 01 Nov 01 Dec 01 Jan 01 Feb 01 Mar 01 Apr 01 May 01 Jun 01 Jul 01 Aug 01 Sep 01 Oct Date 2015/16 2016/17 2017/18 2018/19 Projection
Gas supply Summer 31 Outlook 2019 1. The UKCS continues to be the 4. LNG deliveries are sensitive to Key messages most significant supply of gas the world market and production to the UK. We are expecting capacity has grown rapidly in aggregate supply in summer 2019 recent years. They offer a more to be similar to summer 2018. flexible response to increasingly volatile supply and demand 2. Norway supplies gas through patterns than offshore production. We expect that there will be We anticipate increased levels pipelines to Germany, Belgium We continue to see this additional sufficient gas to meet demand of LNG in comparison to last and France as well as to GB. LNG supply being transported to in summer 2019. summer, and excess supply being Norway production has been high Europe via the interconnector, in exported to Europe in response to over the winter and is expected response to price trends. However, Supplies from the UK continental gas prices in both GB and global to remain so. However due to the the locational diversity of LNG shelf (UKCS) and Norway continue gas markets. expected increase in LNG supply supply is changing the way we to be the dominant components. we believe it is unlikely that we operate our networks. will see flows that are as high as seen in the past few years. 5. Overall storage injection over summer 2019 is likely to be lower 3. Our projection for 2019 is an than last year. This is because Table 5 increase in exports to Europe of the relatively high level of MRS Forecast and historic gas supply by source via the IUK interconnector in stock at the end of winter 2019, comparison to last summer. due to a mild winter. bcm 2014 2015 2016 2017 2018 2019 actual actual actual actual actual forecast UKCS1 15.1 15.9 16.2 17.4 16.8 16.8 Norway2 7.4 11.3 12.4 13.1 13.3 12.4 Continent3 2.2 0.3 0.5 0.1 0.1 0.1 LNG4 7.5 6.2 5.3 3.2 1.4 5.3 Storage5 1.3 1.1 1.2 1.9 1.3 1.4 Total 33.4 34.8 35.6 35.7 32.8 36.1
Liquefied natural gas (LNG) Summer 32 Outlook 2019 Figure 17 Key messages LNG monthly send-out In early winter 2018 we have seen a marked change from this pattern, with supply heading towards levels not reached since 2012. We expect that LNG deliveries 1,800 this summer will be substantially 1,600 higher than last summer, but will not match the high rates seen in 1,400 winter 2018. 1,200 Sendout mcm Last summer the flows at LNG terminals 1,000 were at times down to minimum levels LNG deliveries to NW Europe were LNG shipping costs rose sharply 800 higher during last winter than for during the winter, making Europe 600 many years. New liquefaction a more profitable market than capacity has come on line in many Asian markets for cargoes from 400 producing regions, and total the US and from Yamal in NW 200 production capacity has grown Russia. The combined effect of faster than global LNG demand. this has been that cargoes have 0 been delivered to GB, to all three Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb terminals. As a result, we expect 2016 2017 2018 2019 much higher LNG deliveries this Grain Dragon South Hook summer compared to last year.
Liquefied natural gas (LNG) Summer 33 Outlook 2019 Figure 18 Figure 18 shows the increasing LNG delivery cargoes variety of source and scale of 1,800 vessel delivery. 1,600 1,400 Monthly LNG delivery mcm 1,200 1,000 800 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 Date US Trinidad Russia Qatar Peru Norway Nigeria Equatorial Guinea Egypt Cameroon Algeria This chart has been developed by National Grid using confidential proprietary data from the Argus Media Group under licence. Argus shall not be liable for any loss or damage arising from any party’s reliance on this data.
Spotlight Summer 34 Outlook 2019 Transit gas We continue to experience gas Sale of forward flow capacity in IUK Figure 19 being delivered to GB and supplies is dependent on expected demand Increasing trend of day to day cycling that are in excess of combined in Europe, and transit gas could 350 demand for GB and Ireland are then increase into the future, as a result transported through our networks of increased fuel switching in Europe IUK Closed for maintenance Transit gas is the gas supplied to GB that is above 300 for onward export into Europe. from coal to gas. the level of total GB demand, and transported to Europe This is known as transit gas. 250 via the interconnector For almost the entire summer of Gas flow mcm/day Although gas demand is lower 2018, more gas was being supplied 200 during the summer months, total than was actually needed to satisfy demand is only approximately combined GB demand and Irish 150 25% lower than in winter. As a exports (shown by the dark blue result we see export flows via the line on Figure 19). IUK interconnector offsetting the 100 reduction in GB and Ireland gas The surplus of supply was 50 demand. We are also currently exported to Europe. From early- anticipating LNG deliveries that June through to mid-September, 0 are substantially greater in summer supplies from UKCS and Norway 1 Apr 2018 1 May 2018 1 Jun 2018 1 Jul 2018 1 Aug 2018 1 Sep 2018 2019 than last year, as discussed. alone were greater than the Date demand. Norwegian gas was UKCS Norway LNG Storage Interconnectors GB demand and Irish exports The effect on our network is that the using GB for onward transit to the historical pattern of transporting the rest of Europe. The only time that majority of gas North to South no supply and demand were aligned longer exists. Supply patterns are was in June when IUK was closed more evenly distributed around the for annual maintenance. country, and on occasions we have to reverse the flow, moving gas from South to North.
4 Summer 35 Outlook 2019 Operational outlook In our role as System Operator, we need to manage a number of operability issues on the gas and electricity transmission networks over the summer. This section outlines some of these issues, and the tools and services available to use to make sure we can operate the electricity and gas systems securely and effectively.
Operational outlook Summer 36 Outlook 2019 (Gas) Having timely and accurate physical System pressures are tending to Key messages notifications from CCGTs helps us become higher in the summer, than to identify and manage the risk of previously experienced, as a result variability across the network. of increasing levels of transit gas. Overall supply patterns become As a result we must place greater less predictable when larger Increasing levels of LNG supply focus on enabling safe access for volumes of LNG are delivered will impact patterns of gas flow the summer maintenance schedule. The volume of maintenance to GB terminals. across GB, potentially reducing remains high, but there are the traditional north to south flow, We continue to engage closely with no major risks to NTS access. We must be prepared for and resulting in non-standard the industry to ensure that outages non-standard and short notice configuration of the network. are coordinated and we will always The variability of gas fired re-configuration of the network. aim to facilitate maintenance on the electricity generation has an With LNG supplies being relatively network with minimal disruption to impact on the management We are reliant on timely and closer to areas of demand, we our customers. of system pressures. accurate demand nominations. could continue to see a reduction in compressor usage for bulk You can find more details on our gas transmission, but we must be website. The final Maintenance Plan6 During the winter months, the Gas for electricity generation prepared for the possibility that LNG is published at the end of March. most dominant driver for gas also has an element of weather supply falls away, which can happen demand is the need to provide sensitivity as it responds to the in summer due to price sensitivity. Improving Access to Data heat. This dynamic changes in the varying levels of generation from In response to a number of recent summer months as temperatures renewables. When clusters of This rapidly changing dynamic of industry engagements, National increase. Instead the most Combined Cycle Gas Turbine the network means that we must Grid has mobilised a programme significant driver for gas becomes (CCGT) generators exist in a be prepared to use compression of work to identify and deliver gas fired electricity generation. particular region, this variability at relatively short notice to maintain enhancements to the operational can have an increasing impact system locational pressures. data currently provided to the on regional pressure management. industry through its website. For Our thoughts on the longer term more information please refer to https://www.nationalgridgas.com/insight-and-innovation/gas-future-operability-planning-gfop impacts of this are now being our Operational Data User Guide7. 5 6 https://www.nationalgridgas.com/data-and-operations/maintenance 7 https://www.nationalgridgas.com/sites/gas/files/documents/Operational%20Data%20User%20Guide%20-%20 shared in the Gas Future Version%201.pdf Operability Planning5 document.
Operational outlook Summer 37 Outlook 2019 (Electricity) In order to balance supply and change of frequency (RoCoF) Key messages demand, the ESO can take various and vector shift (see next slide) additional day-to-day actions, as • manage reactive power in described in the electricity supply different regions, to keep voltage section. In addition, a number of levels stable. In periods of low specific tools can be used when demand, this is likely to be actions system conditions are challenging. to reduce the amount of reactive The key factors that cause Both of these factors are impacted power on the system. These operational challenges for the by the weather, so it can be In the summer of 2019 the ESO could include: electricity transmission system difficult to forecast in advance may need to: – setting up contracts in advance during the summer are: what services will be needed. • use footroom services in periods with appropriate generators. • low transmission system We will use a number of tools of low demand to ensure that These would ensure minimum demand (making it difficult to to manage these challenges. there is enough negative reserve profitability so that these balance demand and supply, on the system generators keep generating and affecting reactive power • take actions to manage local (and providing reactive power and hence voltage levels) network constraints. The Western capability) in periods where • high proportions of low inertia High Voltage Direct Current they might otherwise have generation (making it more (HVDC) link will help to relieve been uneconomic difficult to manage system congestion on the transmission – undertaking trading actions frequency). network between Scotland within day, or taking bid / offer and England acceptances via the Balancing • issue a local or national Negative Mechanism so that generators Reserve Active Power Margin provide reactive power capability. (NRAPM) notice if demand levels fall close to the level of inflexible We have also tendered for the generation on the system (further provision of Reactive Power described in the electricity supply Services for summer 2019 in the section) You can read more South Wales and Mersey regions, about NRPAMs on our website8 and for Enhanced Reactive Power • use tools to manage the rate of services in Scotland for 2019/20. 8 https://www.nationalgrideso.com/sites/eso/files/documents/NRAPM%20Forecasting%20Note.pdf
Spotlight Summer 38 Outlook 2019 Update on loss of mains protection settings for smaller generators All generators have loss of mains balancing actions are having to The Distribution Code modifications If you own or operate generation protection systems, designed to be taken on the transmission under DC0079 to change the loss which is a) connected to the shut the generator down if there system to manage both RoCoF of mains protection settings at all distribution network, and b) uses is an issue on the network they are and vector shift. generators greater than 5 MW and vector shift or RoCoF setting connected to. Traditionally, these any new generators below 5 MW below 1 Hz/second for the loss systems would monitor conditions Industry work is underway to have already been implemented. of mains protection, you may on the electricity network such as systematically address the issues The next phase of DC0079 is to be able to receive a payment. the rate of change of frequency in this area. Last summer, NG ESO, ensure the loss of mains settings This would support changing (RoCoF) or vector shift events, UK Power Networks, SSE and at existing generators with the protection ahead of the to understand if there was a Western Power Distribution jointly capacities below 5 MW, or any compliance deadline. Look network issue. carried out an accelerated vector generators which use vector shift out for more information from shift change programme. This protection, move to more suitable the ESO and your distribution As system conditions have evolved ensured that generators in the relay settings as will be mandated network owner over spring 2019. to accommodate an increase in most high risk areas changed their by the Distribution Code. Pending renewable generation and closure protection settings away from vector approval from Ofgem, the of conventional generation, these shift. As a result, the risk of a large implementation of this retrospective historic loss of mains protection number of generators shutting down change will start this year. techniques, such as RoCoF and following a vector shift event has vector shift, have become less been reduced to within manageable As the volume of generation suitable. There is a risk therefore limits. Remaining changes to both which has moved to these new that generators shut down when vector shift and RoCoF relays will protection settings increases, they don’t need to, and several take place as part of the wider the need to manage RoCoF and generators shutting down at change programme. vector shift using operational tools once can in itself cause network will be relaxed. problems, such as a sudden fall in system frequency. As a result,
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