Latest news with #gridoperators
Telegraph
9 hours ago
- Business
- Telegraph
Britons pay £33m to switch off wind farms during Storm Floris
British households and businesses face a £33m bill for switching off wind farms during Storm Floris despite gusts of more than 100mph. Millions were spent on 'curtailing' the output of wind farms on Monday and Tuesday because the electricity network was too congested to accept their power. At the same time, grid operators had to spend a fortune firing up gas plants elsewhere in the country to provide replacement power. The estimated total cost of this was £14.4m on Monday and £19.3m on Tuesday, according to the Wasted Wind website. Grid balancing costs of this kind go straight on to consumer bills, meaning millions of households and businesses will pick up the tab. It came despite wind speeds of more than 100mph during Storm Floris, which caused widespread disruption including power cuts in Scotland. Constraint payments, as the switch-off costs are known in industry jargon, are becoming a growing problem as wind farms connect to the electricity network faster than grid upgrades are completed. This means that during windy periods there is frequently more power being generated than the grid can handle. There are particularly critical bottlenecks between England, where demand for power is highest, and Scotland, where most of the country's wind turbines are being built. Grid operators – who must constantly match supply with demand – take action through the so-called balancing system to temporarily switch off or turn down wind farm output. However, in some cases they must also pay for replacement electricity to be generated elsewhere if switch-offs are caused by grid capacity issues. Replacement power usually comes from gas-fired power plants. In a social media post on Wednesday, Robin Hawkes, a data expert at Octopus Energy who created the Wasted Wind website, said: 'Storm Floris brought wind gusts over 70mph to parts of Scotland this week, it was also one of the most expensive periods for wind curtailment this year. 'Currently the transmission boundaries between Scotland and England don't have the capacity to transmit all the wind energy to the demand further south. 'It's like having a glass constantly filling with water and a straw that's far too small, no matter how hard you suck you just can't drink any faster and the water will overflow. 'The result is that we have to switch off a lot of wind turbines in Scotland, and pay the wind farms to do this. 'The catch is that we still need the electricity further south so we also pay gas power plants to turn on in the south to cover the lost output.' Wasted wind power has cost Britain an estimated £752m so far this year – equivalent to more than £140,000 per hour. The cost has risen from £456m over the same period in 2024. The problem is expected to get worse before it gets better, with most major grid upgrades not expected to be completed until the end of this decade or later. As a result, costs are expected to keep rising to billions of pounds in the coming years. Sam Richards, of campaign group Britain Remade, said: 'Once again, Britain has spent tens of millions of pounds switching off cheap, clean wind power and turning on expensive gas plants – all because our electricity grid is stuck in the past. 'This isn't just a technical problem; it's an economic scandal. Households and businesses are paying higher bills and clean energy is being wasted because of our failure to invest. 'We urgently need to build a modern electricity grid that can move power from where it's generated to where it's needed. 'Without action, we'll keep throwing money away every time the wind blows. It's time to fix this bottleneck and build the 21st century infrastructure Britain desperately needs.'
Reuters
5 days ago
- Business
- Reuters
Explainer: How prepared are U.S. grid operators for extreme heat this summer?
Aug 1 (Reuters) - Grid operators across the U.S. are revamping their forecasting methods, introducing reforms to power markets and streamlining interconnection processes to quickly connect more energy to the grid, as a potent combination of extreme weather and data center growth elevate power demand this summer. High temperatures and the expansion of power-hungry data centers are set to push 2025 summer power consumption to higher levels than the past four summers, federal regulators said earlier this year. Heat waves have already strained the power grid in parts of the country in recent weeks. 'Extreme weather events are becoming more common, and we are adjusting our planning for that,' said Dan Lockwood, PJM Interconnection spokesperson. Here's how grid operators are positioned to meet demand this summer, and longer-term measures they are taking to shore up the system. Heading into the summer, PJM had forecast power consumption to peak at just over 154,000 MW. The company, which is the largest grid operator in the U.S. and serves one in five Americans, said it is prepared to meet that demand, but warned that it could touch an all-time high of 166,000 MW in an extreme scenario. In that case, it would call on customers to reduce their power use in exchange for compensation. PJM has been streamlining its interconnection process to bring new power onto the grid. It has also fast-tracked projects that do not require extensive grid upgrades to connect to the system to get them online quicker. California Independent System Operator estimated it has a power surplus of 1,451 MW this summer, measured against the industry-standard, one in 10 year emergency event. That marks a reversal from three years ago, when it estimated a shortfall of 1,700 MW. CAISO has also been moving to quickly add new power to its grid, with around 25 GW added over the last five years, said Dede Subakti, vice president of system operations. Much of this has been battery storage, which helps balance supply and demand, bringing CAISO's total pool of battery storage to 11 GW. 'With all this additional capacity, we're sitting pretty good with 2025 summer,' Subakti said. However, the grid could still see shortfalls if a prolonged heat-wave affects the entire West, or if potential wildfires damage power transmission lines, CAISO said. ISO New England anticipates electricity demand will touch 24,803 MW this summer under normal weather conditions - and potentially 25,886 MW in case of extended heat waves - but expects to have adequate power to meet that. ISO-NE is one of the grid operators that is evaluating changes to its capacity auction to bolster grid reliability. This includes transitioning to a 'prompt' auction, held shortly before the power is needed, compared with the current practice of holding them three years in advance. In addition, it is looking to move to two seasonal commitment periods per year for the auction, to tackle the distinct risks that summer and winter demand pose to the grid. It intends to file an initial proposal for this new market structure with federal regulators before year end. Midcontinent Independent System Operator predicted that peak demand in its footprint could reach nearly 123 GW this summer, with roughly 138 GW of available power generation to meet that. Like other grid operators, however, it warned that extreme weather events still present a risk to the grid. MISO, which has been operating near its minimum reserve margin requirement since 2022, has also been making changes to its wholesale markets as grid risks grow, including assessing the reliability of its infrastructure on a seasonal basis. It implemented a 'reliability-based demand curve' in its latest auction, under which the price of electricity resources increases as the grid approaches its minimum requirements. MISO has added around 31 GW of nameplate power to its grid from 2020 through mid-2025, with another 10.9 GW estimated for this year. Meanwhile, nearly 11 GW of power resources have or are set to retire between 2020 through early 2026.
Yahoo
25-07-2025
- Business
- Yahoo
Making Battery Degradation Measurable: Why Cost-Aware Operation Is Essential
As renewable energy becomes the foundation of electricity systems around the world, the importance of stationary battery storage is no longer in question. Lithium-ion batteries are being deployed at unprecedented rates to support grid reliability, integrate variable generation, defer infrastructure upgrades, and provide flexible capacity across multiple electricity markets. These systems are now considered critical infrastructure. Their ability to charge and discharge energy on demand gives grid operators and energy providers a powerful tool to balance supply and demand, respond to price volatility, and support decarbonization. Yet, while batteries are increasingly central to system planning, the strategies used to operate them remain largely focused on short-term revenue. This gap between operational reality and technical potential creates a risk: that batteries, if not managed correctly, will fall short of their expected value—economically, technically, and environmentally. Most Battery Operations Prioritize Short-Term Gains In the current market environment, battery energy storage systems (BESSs) are typically controlled through revenue-optimizing algorithms that respond to short-term market signals. Whether participating in frequency regulation, trading across day-ahead and intraday markets, or engaging in reserve or capacity mechanisms, the majority of optimization frameworks are designed to maximize immediate profit. This approach is understandable. Market opportunities are real, and operators are under pressure to deliver returns on capital-intensive assets. The problem is that these decisions rarely account for battery degradation, which introduces a hidden cost that compounds over time. Degradation reduces usable capacity, limits power output, and in some cases increases safety risks. If not properly managed, it can significantly shorten the useful life of a system or lead to costly replacements. In some business cases, degradation-related losses can account for a large fraction of the total cost of ownership, particularly when project life is assumed to extend over 10 or 15 years. Despite this, degradation is often ignored in daily operation because it is difficult to quantify, and even harder to include in optimization frameworks that favor simplicity and speed. Battery Degradation Is Not Just Technical—It's Economic The physics of battery degradation are complex. Factors such as the depth and rate of charge or discharge, resting states of charge, temperature, and calendar time all influence how quickly a battery loses capacity and efficiency. Different chemistries and designs degrade in different ways, and degradation profiles are often nonlinear, with certain thresholds or conditions accelerating damage disproportionately. From an economic standpoint, this variability presents a challenge. If degradation cannot be measured and priced accurately, it cannot be factored into dispatch decisions. As a result, operators face a structural blind spot: the systems are making choices that optimize short-term margins while potentially destroying long-term value. In practical terms, this might mean over-responding to price spikes, engaging in high-throughput trading strategies that shorten asset life, or failing to reserve enough capacity for high-value services like frequency regulation later in the project lifecycle. The Missing Piece: A Degradation Cost Function One promising way to bridge this gap is to implement a cost function that quantifies battery degradation in monetary terms and integrates this cost into the optimization process. A cost function is a mathematical model that estimates the financial impact of a given operational action on battery health. For example, if a high-rate discharge at low state of charge is known to accelerate degradation, the cost function assigns a penalty to that action. This cost is then compared against the expected market revenue of the action, allowing the operator or algorithm to weigh short-term gain against long-term impact. This approach aligns with how other critical infrastructure is managed. In thermal plants, for example, operators account for startup costs and wear-and-tear in dispatch planning. In aviation, flight control systems include maintenance cost considerations in route and engine use optimization. There is no reason battery storage should be any different. However, for this to work, the cost function must be credible. It cannot rely on simple proxies such as number of cycles or total energy throughput. Degradation in modern lithium-ion batteries is too nuanced to be captured by one-size-fits-all rules. Instead, the cost function must be informed by detailed models that reflect battery-specific ageing behaviors under different conditions. These models may be physics-based, data-driven, or hybrid in nature. Ideally, they are validated against real-world operational data and tailored to the actual battery system in use. Without this rigor, there is a risk that the cost function either underestimates degradation, leading to overuse, or overestimates it, leading to missed opportunities. Operational Implications and Market Potential Integrating a degradation-aware cost function into BESS operation can fundamentally improve system performance. Operators can maintain higher capacity over time, reduce maintenance and replacement costs, and plan reinvestments more accurately. In projects with long-term power purchase agreements (PPAs) or multi-year capacity commitments, this can make the difference between a profitable and an unprofitable investment. Furthermore, this approach opens the door to new forms of asset management. Storage portfolios can be benchmarked not only on energy dispatched or revenue earned, but also on degradation efficiency—how much value is extracted per unit of capacity lost. Over time, this can become a standard performance indicator, encouraging best practices across the industry. System operators and aggregators can also use degradation cost functions to harmonize control strategies across heterogeneous assets, improving fleet-level performance. Cost Functions Provide Actionable Insight Battery energy storage systems are key to the stability and flexibility of tomorrow's energy systems. But their long-term value depends not only on how much energy they move, but on how wisely they are operated. Integrating degradation into operational decision-making is no longer optional; it is a necessary step toward responsible, sustainable, and economically viable storage deployment. Cost functions that translate technical ageing into financial terms offer a practical solution to this challenge. When built on accurate models and integrated into dispatch algorithms, they enable a more balanced strategy, one that recognizes both immediate market opportunities and long-term asset health. By making battery degradation measurable and actionable, we can unlock smarter storage and more resilient energy systems. —Laura Laringe is CEO and co-founder of reLi Energy GmbH. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
Making Battery Degradation Measurable: Why Cost-Aware Operation Is Essential
As renewable energy becomes the foundation of electricity systems around the world, the importance of stationary battery storage is no longer in question. Lithium-ion batteries are being deployed at unprecedented rates to support grid reliability, integrate variable generation, defer infrastructure upgrades, and provide flexible capacity across multiple electricity markets. These systems are now considered critical infrastructure. Their ability to charge and discharge energy on demand gives grid operators and energy providers a powerful tool to balance supply and demand, respond to price volatility, and support decarbonization. Yet, while batteries are increasingly central to system planning, the strategies used to operate them remain largely focused on short-term revenue. This gap between operational reality and technical potential creates a risk: that batteries, if not managed correctly, will fall short of their expected value—economically, technically, and environmentally. Most Battery Operations Prioritize Short-Term Gains In the current market environment, battery energy storage systems (BESSs) are typically controlled through revenue-optimizing algorithms that respond to short-term market signals. Whether participating in frequency regulation, trading across day-ahead and intraday markets, or engaging in reserve or capacity mechanisms, the majority of optimization frameworks are designed to maximize immediate profit. This approach is understandable. Market opportunities are real, and operators are under pressure to deliver returns on capital-intensive assets. The problem is that these decisions rarely account for battery degradation, which introduces a hidden cost that compounds over time. Degradation reduces usable capacity, limits power output, and in some cases increases safety risks. If not properly managed, it can significantly shorten the useful life of a system or lead to costly replacements. In some business cases, degradation-related losses can account for a large fraction of the total cost of ownership, particularly when project life is assumed to extend over 10 or 15 years. Despite this, degradation is often ignored in daily operation because it is difficult to quantify, and even harder to include in optimization frameworks that favor simplicity and speed. Battery Degradation Is Not Just Technical—It's Economic The physics of battery degradation are complex. Factors such as the depth and rate of charge or discharge, resting states of charge, temperature, and calendar time all influence how quickly a battery loses capacity and efficiency. Different chemistries and designs degrade in different ways, and degradation profiles are often nonlinear, with certain thresholds or conditions accelerating damage disproportionately. From an economic standpoint, this variability presents a challenge. If degradation cannot be measured and priced accurately, it cannot be factored into dispatch decisions. As a result, operators face a structural blind spot: the systems are making choices that optimize short-term margins while potentially destroying long-term value. In practical terms, this might mean over-responding to price spikes, engaging in high-throughput trading strategies that shorten asset life, or failing to reserve enough capacity for high-value services like frequency regulation later in the project lifecycle. The Missing Piece: A Degradation Cost Function One promising way to bridge this gap is to implement a cost function that quantifies battery degradation in monetary terms and integrates this cost into the optimization process. A cost function is a mathematical model that estimates the financial impact of a given operational action on battery health. For example, if a high-rate discharge at low state of charge is known to accelerate degradation, the cost function assigns a penalty to that action. This cost is then compared against the expected market revenue of the action, allowing the operator or algorithm to weigh short-term gain against long-term impact. This approach aligns with how other critical infrastructure is managed. In thermal plants, for example, operators account for startup costs and wear-and-tear in dispatch planning. In aviation, flight control systems include maintenance cost considerations in route and engine use optimization. There is no reason battery storage should be any different. However, for this to work, the cost function must be credible. It cannot rely on simple proxies such as number of cycles or total energy throughput. Degradation in modern lithium-ion batteries is too nuanced to be captured by one-size-fits-all rules. Instead, the cost function must be informed by detailed models that reflect battery-specific ageing behaviors under different conditions. These models may be physics-based, data-driven, or hybrid in nature. Ideally, they are validated against real-world operational data and tailored to the actual battery system in use. Without this rigor, there is a risk that the cost function either underestimates degradation, leading to overuse, or overestimates it, leading to missed opportunities. Operational Implications and Market Potential Integrating a degradation-aware cost function into BESS operation can fundamentally improve system performance. Operators can maintain higher capacity over time, reduce maintenance and replacement costs, and plan reinvestments more accurately. In projects with long-term power purchase agreements (PPAs) or multi-year capacity commitments, this can make the difference between a profitable and an unprofitable investment. Furthermore, this approach opens the door to new forms of asset management. Storage portfolios can be benchmarked not only on energy dispatched or revenue earned, but also on degradation efficiency—how much value is extracted per unit of capacity lost. Over time, this can become a standard performance indicator, encouraging best practices across the industry. System operators and aggregators can also use degradation cost functions to harmonize control strategies across heterogeneous assets, improving fleet-level performance. Cost Functions Provide Actionable Insight Battery energy storage systems are key to the stability and flexibility of tomorrow's energy systems. But their long-term value depends not only on how much energy they move, but on how wisely they are operated. Integrating degradation into operational decision-making is no longer optional; it is a necessary step toward responsible, sustainable, and economically viable storage deployment. Cost functions that translate technical ageing into financial terms offer a practical solution to this challenge. When built on accurate models and integrated into dispatch algorithms, they enable a more balanced strategy, one that recognizes both immediate market opportunities and long-term asset health. By making battery degradation measurable and actionable, we can unlock smarter storage and more resilient energy systems. —Laura Laringe is CEO and co-founder of reLi Energy GmbH. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
24-07-2025
- Business
- Bloomberg
EON Seen Raising Investments by About €11 Billion Through 2030
German power utility EON SE is likely to increase spending by about €11 billion ($12.9 billion) by the end of the decade as the country makes grid investments more attractive, according to a report from Bernstein. As one of Europe's largest grid operators, EON plays a key role in supporting the expansion of renewable power. Following calls from the company and its peers — which rely on regulated assets for much of their income — Germany has proposed changes that would boost returns for investors in the network.
