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<p>Electricity capacity assessments by Ofgem and National Grid, as well as our own
modelling at DECC, have consistently shown tight capacity margins in the years between
now and the first Capacity Market delivery year (2018/19) if we did not have National
Grid’s New Balancing Services.</p><p>Earlier today, National Grid announced the results
of the second round of its competitive tender for New Balancing Services in winter
2015/16. They have announced that almost 1.9GW of capacity has been secured through
the second tender round, bringing the total secured for this winter to 2.56GW. This
is additional reserve capacity that will be kept on standby outside the market in
case it is needed. The announcement is available here:</p><p><a href="http://media.nationalgrid.com/press-releases/uk-press-releases/corporate-news/additional-reserve-secured-for-winter-1516/"
target="_blank">http://media.nationalgrid.com/press-releases/uk-press-releases/corporate-news/additional-reserve-secured-for-winter-1516/</a></p><p>We
expect this to mean adequate margins to meet the reliability standard this winter,
even in scenarios where the system is under stress, such as during exceptionally cold
weather. Further information on the impact of NBS on the overall market position for
winter 2015/16 will be published in July.</p>
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