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Capacity margins more uncertain for 2016-17: Ofgem

National Grid has the tools in place to manage electricity demand this winter but uncertainty in the outlook for 2016-17 has increased, according to Ofgem.

The regulator published its annual Electricity Capacity Assessment report on Friday 17 July. It said that, with National Grid having procured 2.56GW of capacity through its balancing services this winter, the Loss of Load Expectation (LOLE) range had reduced to between 0 hours-4 hours––within the government’s reliability standard. But the report’s central view showed that LOLE for winter 2016-17 could range between 2 hours-15 hours. National Grid is consequently consulting on extending its balancing services, but Ofgem said the market could play a significant role in managing the risks.

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