Lower capacity margins underline need for transmission charging reform

The National Grid’s Winter Review and Consultation report found that the margin of spare capacity in generation this winter could be as low as 1.2%. This is in comparison to a margin of 4.1% last winter.

The report reviews security of supply in gas and electricity in the 2014/2015 winter. It launches a consultation on National Grid’s forecast for the upcoming year.

Energy Minister Fergus Ewing highlighted that the situation shows complacency by the UK Government. Ewing warned that next years margins could be under greater pressure if Longannet is forced to close prematurely.

The UK’s current policy continues to have a negative impact on existing thermal generation capabilities in Scotland and in particular the potential for new power stations to be built.

Ewing said:

“These figures show that the national grid is becoming even harder pressed to keep the lights on this winter. Thermal energy is a source of generation which has a significant impact on grid capacity margins and can enhance energy security. At a time when the UK Government is presiding over a period of extremely narrow generation capacity margins, it has chosen not to intervene regarding the unfair transmission charges which are threatening the future of thermal generation in Scotland.” “Given the need to address shrinking capacity margins it makes no sense to cancel planned onshore wind developments, as the UK government is doing through the removal of financial support. The situation of narrowing capacity margins will only be exacerbated if Longannet closes prematurely.” “It is vital, therefore, that all possible options for averting the premature closure of the Longannet site are explored, such as action to address discriminatory transmission charges. The Scottish Government has raised these concerns at the highest level in the UK Government and is engaging all relevant authorities and agencies alongside Scottish Power to secure the best possible outcomes for those affected throughout the local economy and further afield by the uncertainty of the site.”