The First Week of I-SEM: Day Three
I-SEM Day Three: Imbalance price volatility continues
Imbalance prices in I-SEM may be scaring people at the moment. Imbalance is just the “froth” on top of the 4.5GW that is traded at the “normal” and “understandable” prices, but it has the ability to capture imaginations and instill fear. Right now, our fifty-something hours of I-SEM experience includes ten hours of negative imbalance prices and two hours above €150/MWh. Average imbalance prices were less than €10/MWh yesterday… How does what is happening in I-SEM compare with what is happening in Great Britain at the moment? It seems that I-SEM, so far, is just more extreme. Which leaves a few interesting questions:
- Is there even a problem here? Perhaps it is all as it was meant to be.
- How much is this simply an effect of the learning curve for the System Operator?
- Are there foibles in the TSC that can be usefully ironed-out?
- Should wind be utilised more, or at all, in the balancing mechanism or is priority dispatch sacrosanct?
- Have frailties in the physical system been exposed?
- How can the interconnectors be utilised further to relieve constraints?
All big topics which we can discuss for a long time. In tomorrow’s insight we will be exploring the impact these imbalance prices are having on wind generators. ElectroRoute is currently providing forecasting, trading and balancing management services to over 1GW of assets in I-SEM. To find out more about the services that we can provide to help you navigate the stormy I-SEM waters, please contact our Client Services team.