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7/29/2019 Electric Energy Market in UK - Fernando Lucio
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INSTITUTO TECNOLOGICO Y DE ESTUDIOS SUPERIORES DE MONTERREYMASTER OF ENERGY ENGINEERING
ELECTRIC ENERGY MARKET IN THE UK
REGULATION AND FINANCING OF ENERGY RESOURCES
FERNANDO LUCIO SALINASMONTERREY, N. L. MAY 9th, 2011
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Index
Introduction ..................................................................................................................... 3Chapter 1. Generation mix......................................................................................... 3Chapter 2. The British Electricity Network................................................................ 6
Chapter 3. Sector Organization .............................................................................. 12Chapter 4. Markets structure.................................................................................... 13Chapter 5. Customers classification....................................................................... 15Chapter 6. Type of Suppliers..................................................................................... 18Annex 1. UK Energy Profile......................................................................................... 20
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INTRODUCTIONUnder many scenarios, demand for electricity is likely todouble by 2050 compared to today. Changes in othersectors are likely to mean greater reliance on electricityfor applications such as transport and heating, pushing
up demand. At the same time, UKs existing powerplants are coming to the end of their lives, with arounda quarter set to close within the next decade alone. Tocope with this, UK will need a new generation of secure,low carbon electricity, powered by a mix of renewableenergy, new nuclear power and fossil fuel powerstations fitted with new Carbon Capture and Storage(CCS) technology capable of locking away carbondioxide emissions, and reusing as far as possible thewaste heat that is generated.
Much of this change is likely to need to happen between now and 2030, requiring inexcess of 110 Billion ($160 USD Billion) of investment in generation, transmission and
distribution over the next decade.
As the largest single market in the world, the EU (European Union) has the opportunity todemonstrate to the rest of the world that a low carbon economy is firmly in theireconomic and energy security interests. Within the EU, UK will support the rapid transitionto a low carbon European economy, including through the development of a robust EUlow carbon roadmap to 2050 (and the steps that UK will take to 2020) and byencouraging the EU to adopt a 30% emissions reduction target for 2020.
CHAPTER 1. GENERATION MIXThe UK currently has 19 operating reactors at ten nuclear power stations, which provideup to 18% of the electricity generated in the UK. The 2008 White Paper on Nuclear Powerand the Low-Carbon Transition Plan (published in July 2009), confirmed that new nuclearpower has a key role to play in the UKs low-carbon future.Renewable energy is a vital component of the UKs diverse energy mix. In offshore wind,UK has one of the best natural resources in Europe, and the UK already leads the world inoffshore wind farms. The UK is also leading the way in several developing technologyareas like wave and tidal energy, where UK also have the best natural resources inEurope.Oil, gas and coal remain vital parts of the UKs energy mix and are used extensively forelectricity generation. However, if UK is to avoid dangerous climate change, they needto find ways to substantially reduce the carbon dioxide emissions for these sources.Development and deployment of Carbon Capture and Storage (CCS) is critical to this,as it has the potential to reduce the CO2 emissions from power stations by around 90%,
and make a significant contribution towards the UK and international climate changegoals.Distributed energy is the supply of low carbon or renewable electricity and heat, tocustomers of all scales including domestic or industrial, and is generated on or relativelynear the site where it is used. It includes combined heat and power (CHP), small scaleand micro hydropower, micro and small wind turbines, photovoltaics (solar PV), biomassand district heating as a means of transporting renewable or low carbon heat tomultiple consumers.
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Table 1.1 Electricity production by fuel type GWh2007 2008 2009
Nuclear 63,028 52,486 69,098Hydro 5,088 5,168 5,262
Wind 5,288 7,114 9,324
Coal 136,545 125,376 104,608
Oil 4,494 5,743 4,368
Gas 165,793 176,215 165,482
Other renewables 9,983 10,034 11,510
Other 2,753 2,444 2,327
Total 392,972 384,579 371,978
Table 1.2 Electricity demand GWh2007 2008 2009
Production 392,972 384,579 371,978
Other sources 3,859 4,089 3,685
Imports 8,613 12,294 6,609
Exports -3,398 -1,272 -3,748
Total supply 402,046 399,690 378,524
Total demand 401,669 399,387 378,714
Chart 1.1 Electricity supplied by fuel type
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Maximum demand in the UK during the winter of 2009/2010 occurred in January 2010. At60,231 MW, this was 0.1 per cent lower than the previous winters maximum in January2009. In 2009/10 the maximum load in Great Britain occurred on 7 January 2010 at thehalf hour period ending 17:30 (58,510 MW). However, in Northern Ireland the maximumload occurred on 12 January 2010 at the period ending 17:30 (1,721 MW), which was 1.0per cent below that of the previous winter. In Great Britain the highest ever load met was
60,118 MW on 10 December 2002.
Maximum demand in 2009/2010 was 77% of the UK capacity of major power producers(MPPs) as measured at the end of December 2009, down from 79% in 2008/2009.
The load factor of nuclear stations in 2009 at 65.4 per cent was 14.7 percentage pointsbelow the recent peak load factor of 80.1 per cent in 1998, but 16 percentage pointshigher than in 2008, when there were many planned and unplanned maintenanceoutages.
The wet year of 2007 saw a greater use of large scale hydro plant, with hydros loadfactor the highest since 2000. 2008 saw a slight fall in load factor, as the increase incapacity was not quite matched by the increase in generation. With less rainfall in 2009,hydros load factor was lower still.
CCGT efficiency has remained around the 46-47 per cent mark over the last few years,with little new (more efficient) capacity coming online prior to 2009. The efficiency ofnuclear stations has been on a rising trend in recent years as older, less efficient stationshave closed, with 2009 showing the highest efficiency yet, of 39.0 per cent. However,outages have tended to counteract these efficiency gains in some years, notably in2008.
Carbon dioxide emissions from power stations
It is estimated that carbon dioxide emissions from power stations accounted for 31 percent of the UKs total carbon dioxide emissions in 2009. Emissions vary by type of fuel used
to generate the electricity and emission estimates for all electricity generation for 2007 to2009 are shown in Table 1.3 below.
Table 1.3 Estimated carbon dioxide emissions from electricity generation 2007 to 2009
Emissions
Fuel(tonnes of carbon dioxide per GWh electricity
supplied)
2007 2008 2009
Coal 913 903 915
Oil 623 730 633
Gas 400 404 405
All fossil fuels 626 608 598
All fuels (including nuclear and renewables) 500 496 452
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CHAPTER 2. THE BRITISH ELECTRICITY NETWORK
Electricity generators, includingthose generating electricity fromrenewable energy sources,
normally connect to either thetransmission grid or the distributionnetworks.
The GB transmission grid consists ofaround 25,000 km of high voltageoverhead lines (the national grid)and 800,000 km of overhead linesand underground cables (theregional distribution networks).
The difference between these grids is normally the voltage: Transmission grid voltages are normally 275 kilovolts and above in England and
Wales; 132 kilovolts in Scotland and offshore. Distribution network voltage levels are normally 11 kilovolts, 33 kilovolts, 66 kilovolts
and 132 kilovolts (except for offshore wind and Scotland).
National Grid owns the England and Wales transmission system. Scottish PowerTransmission (SPT) and Scottish Hydro Electric Transmission Limited (SHETL) each own partof the transmission system in Scotland. As transmission owners, these companies areresponsible for building and maintaining safe and efficient networks, and are regulated
by Ofgem. The grid in Northern Ireland is owned by Northern Ireland Electricity.
As GB system operator, National Grid is also responsible for overseeing and managingthe flow of electricity across the whole of the GB transmission network. This includes theelements owned and operated by SPT and SHETL. National Grid also co-ordinatesconnection offers to new generators. The system operator for Northern Ireland, SONI,manages the electricity system and flows in Northern Ireland.In all, there are 14 electricity distribution networks owned and operated by sevendistribution network operators (DNOs).
Initially the National Grid Company was owned by the 12 privatized regional electricitycompanies, but was floated on the Stock Exchange in 1995. National Grid (and itspredecessors since 1990) has owned and operated the high voltage transmission systemin England and Wales linking generators to distributors and some large customers. Thistransmission system is linked to the transmission system of continental Europe via an inter-connector to France under the English Channel.
Table 2.1 Inter-connectors MWEngland - France 2,000
Scotland - Northern Ireland 500
Northern Ireland - Irish Republic 600
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Chart 2.1 Electricity supply system in UK 2009
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Table 2.2 separates the capacities of MPPs geographically to show England and Wales,Scotland and Northern Ireland. In 2009, 83% of the generating capacity in the UK ownedby MPPs was in England and Wales, 14% was in Scotland and 3% in Northern Ireland. Outof the net increase in UK capacity of 1,472 MW in 2009, 721 MW was in Scotland, 667 MWwas in England and Wales, and 84 MW was in Northern Ireland.
Table 2.2 Plant capacity - England and Wales, Scotland and NorthernIreland MW
2007 2008 2009Major power producers in England and Wales
Total transmission entry capacity 63,875 64,115 64,783
Of which:
Conventional steam stations: 28,258 28,447 28,455
Coal fired 19,552 19,613 19,621
Oil fired 3,778 3,778 3,778
Mixed or dual fired 4,928 5,056 5,056
Combined cycle gas turbine stations 23,353 23,351 23,955
Nuclear stations 8,569 8,569 8,569
Gas turbines and oil engines 1,018 1,018 1,037
Hydro-electric stations:
Natural flow 136 137 140Pumped storage 2,004 2,004 2,004
Wind 403 420 454
Renewables other than hydro and wind 134 169 169Major power producers in Scotland
Total transmission entry capacity 10,056 10,383 11,104
Of which:
Conventional steam and 5,119 5,119 5,869
combined cycle gas turbine stations
Nuclear stations 2,410 2,410 2,289
Gas turbines and oil engines 263 264 265
Hydro-electric stations:
Natural flow 1,157 1,255 1,255
Pumped storage 740 740 740
Wind 367 552 642Renewables other than hydro and wind - 44 44
Major power producers in Northern Ireland
Total transmission entry capacity 2,048 2,284 2,369
Prices
UK industrial energy prices are an important part of the energy departments work. Theyare widely used within government - in briefing, to assist in developing and monitoringpolicies, to assess price trends, to highlight (and therefore help to prevent) pricediscrimination, and to monitor the effects of liberalizing energy markets. They are alsoused extensively by industry, i.e. as price escalators in fuel purchasing contracts and asevidence in contract negotiations. Table 2.3 below shows the fuel price for the industrialsector from 2004 to 2010.
Very high gas prices in 2006 resulted in a particularly low CCGT load factor but thisrecovered in the last three years to levels comparable to 2003 to 2005, with 2008 showingthe highest load factor since 2000. With slightly less generation, and an increase incapacity, the CCGT load factor in 2009 fell back by 8 percentage points to 62.8 percent. More intensive use of coal fired stations saw their plant load factor rise to 72.9 percent in 2006, but these fell continuously over the next three years, to just 49.8 per cent in2009, with the implementation of the Large Combustion Plant Directive, as well as higherprices relative to gas, restricting their use.
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Table 2.3 Prices of fuels purchased Industrial Sector (1)
Great Britain
cUSD
perkWh
Size of consumer 2004 2005 2006 2007 2008 2009 2010
Coal Small 1.344 1.560 1.646 1.722 2.071 2.561
Medium 1.147 1.363 1.349 1.322 1.554 1.765
Large 0.766 0.898 0.851 1.028 1.336 1.221
All consumers - Average 0.826 0.971 0.928 1.079 1.404 1.317 1.516
Median 1.252 1.450 1.632 1.617 1.761 2.257
Heavy fuel oil Small 2.304 3.255 4.093 4.132 6.643 5.803 6.955
Medium 2.164 2.966 3.514 3.784 5.857 5.208 6.355
Large 2.033 2.592 3.501 3.553 4.785 5.178 6.458
Of which: Extra large 2.020 2.511 3.504 3.437
Moderately large 2.056 2.743 3.494 3.766
All consumers - Average 2.114 2.810 3.583 3.709 5.402 5.271r 6.487
Median 2.311 3.348 4.147 4.026 6.769 5.329 6.584
Gas oil Small 3.538 4.632 5.569 5.571 8.199 6.576 7.999
Medium 3.381 4.484 5.368 5.538 8.005 6.556 8.061
Large 3.231 4.121 5.016 5.111 7.619 6.242 7.593
All consumers - Average 3.262 4.188 5.082 5.186 7.690 6.298 7.673
Median 3.386 4.587 5.550 5.491 8.109 6.468 7.911
Electricity Small 7.584 9.216 11.397 12.396 14.175 16.067 14.644
Medium 5.849 7.631 10.045 10.802 12.056 14.461 12.302
Large 4.640 6.487 8.435 7.938 10.622 10.612 9.735
Of which: Extra large 4.363 6.124 7.671 6.517 9.055 8.311 8.469
Moderately large 4.854 6.771 9.024 9.036 11.832 12.391 10.714
All consumers - Average 5.116 6.934 9.013 8.918 11.188 11.898 10.666
10% decile 5.041 6.381 7.628 8.417 9.820 10.059 9.942
Median 6.972 8.622 11.006 11.790 13.584 14.968 12.744
90% decile 9.749 11.937 14.685 15.176 19.066 20.948 17.885
Gas Small 2.221 2.700 3.776 3.990 4.740 4.797 4.437Medium 1.923 2.519 3.411 3.406 3.893 4.147 3.714
Large 1.509 2.226 2.871 2.242 3.365 2.941 2.676
All consumers - Average 1.573 2.270 2.952 2.412 3.460 3.119 2.834
Firm 1.668 2.386 3.033 2.691 3.609 3.273 3.023
Interruptible 1.493 2.172 2.885 2.180 3.336 2.990 2.675
10% decile 1.619 1.946 2.371 2.193 2.831 2.435 2.504
Median 2.114 2.650 3.715 3.805 4.419 4.296 3.797
90% decile 2.789 3.892 5.093 5.199 6.024 7.777 7.438
(1) Currency at 05/06/2011, 1 GBP = 1.6366 USD for comparison purposes only.
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Chart 2.2 Fuel price indicators for the industrial Sector from 1980 to 2009
Real prices, 2005 = 100
1980 1990 2000 2007 2008 2009
Coal 208.4 133.7 81.6 104.3 128.7 119.4
Electricity 161.8 126.2 86.9 128.6 153.5 164.3
Gas 136.5 81.1 48.9 94.4 137.5 117.6
Heavy fuel oil 139.7 56.4 70.3 125.1 176.6 167.6
Industrial prices 152.4 108 76.2 121.7 155.1 155.5
Chart 2.3 Fuel Prices for Manufacturing Industry, Cash Terms,1990 to 2010
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010p
c
USDperkWh
Coal
Gas
Electricity
Heavy Fuel Oil
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Factors that affect the price of the energy
Supply and demandThese days there is relatively high demand for energy in summer (to power airconditioning units etc). However, as many power stations schedule their main annualmaintenance programs at this time of year, a reasonable amount of generationcapacity is removed from the market. Many of the UKs ageing nuclear power stations
have been called upon in order to generate enough electricity to meet demand. This inturn supports higher wholesale energy costs.
This supply shortage is compounded by the Large Combustion Plant Directive, which wasintroduced on 1 January 2008 to cut acid rain causing emissions from coal fired powerstations. To comply, these power stations had to fit new equipment to reduce theseemissions, which lead to extended maintenance shutdowns and higher operating costs.Around a third of the UKs coal fleet (c. 10% of total UK generating capacity) opted notto comply and as a result now have only 20,000 hours until their closure in 2015. As aresult, these stations tend to operate only when prices are high to optimize theirprofitability and to fund the build of replacement stations.
Cost of producing electricityAround 75% of the UKs electricity is produced by coal and gas fired power stations.Operators of these power stations also have to purchase emissions allowances via the EUEmissions Trading Scheme (EU ETS) to cover their CO2 emissions. Changes to the cost ofcoal, gas and emissions allowances have a dramatic affect on UK wholesale electricityprices, and for various reasons all three factors have risen dramatically:
a. Gas: The UK is becoming more reliant on imported gas to meet local demand.Influential factors include the price of oil, reliability of gas import infrastructure andEuropean weather; all of which affect the amount of gas the UK receives as well asthe price producers pay.b. Coal: Coal prices have settled somewhat since 2008. The Government haspledged not to allow any new coal plants in the UK, unless a proportion of their CO
emissions are buried underground.c. Emissions allowances: The cost of emissions allowances has continued to climbsteadily since February 2009, when emissions allowances hit a record low. Airlineemissions will be added to the EU ETS from 2012, which may drive prices up.
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CHAPTER 3. SECTOR ORGANIZATIONThe UK has a privatized electricity sector, where generators and distributors tradeelectricity on a wholesale market. The largest power producer in the country is Electricitde France (EDF) Energy, which controls most of the nuclear power capacity andgenerates one sixth of the total electricity supply. Other important generating companies
include E.ON UK, RWE-npower, Scottish and Southern Energy (SSE), and ScottishPower(SP). National Grid owns and operates the national transmission system in England andWales, whereas SSE and SP operate the grid in Scotland, and Northern Ireland Electricity(NIE), operates the grid in Northern Ireland.
Up to March 2005 the electricity industries of Scotland, Northern Ireland and England andWales operated independently although inter-connectors joined all three grid systemstogether.
The UK has slowly integrated the formally-separate electricity markets of its componentparts (England, Northern Ireland, Scotland, and Wales). The British government formedthe New Electricity Trading Arrangements (NETA) in 2001 to integrate the electricitymarkets of England and Wales. In 2005, the British government extended NETA to
Scotland as the British Energy Transmission and Trading Arrangements (BETTA). There areplans to eventually incorporate Northern Ireland in to the BETTA. In addition, SP and SSEhave increased the transmission capacity between England and Scotland to allow themto sell more electricity to English and Welsh customers.
At the end of 2009, there were 32 major power producers operating in Great Britain.Competition developed in mainland Britain as follows:a) From 1 April 1990, customers with peak loads of more than 1 MW (about 45% of thenon-domestic market) were able to choose their supplier.b) From 1 April 1994, customers with peak loads of more than 100 kW were able tochoose their supplier.c) Between September 1998 and May 1999, the remaining part of the electricity market
(i.e. below 100 kW peak load) was opened up to competition.
EDF Energy is one of the UKs largest energy companies and it is the largest producer oflow-carbon electricity. A wholly-owned subsidiary of the EDF Group, one of Europe'slargest energy groups, they generate around one fifth of the UK's electricity and employaround 15,000 people. They supply electricity and gas to around 5.5 million residentialand business customers, making them the biggest supplier of electricity by volume.
The company is organized into the following business units:Existing Nuclear operates eight nuclear power stations in the UK with a combinedcapacity of almost 9,000 megawatts electricity that is vital to the UK economy.Nuclear New Build which is tasked with the delivery of the new generation of nuclearplants in line with EDFs global program of producing safe, affordable, reliable, low-
carbon production of electricity in the UK.Energy Sourcing and Customer Supply runs power stations and wind farms, buys and sellspower to meet future generation and customer needs and deals with all their energycustomers.
EDF Energy operates gas- and coal-fired power plants, undertaking base load (the loadused for heating, lighting, compressors and pumps when there is no production) andcycling duties. They operate three major plants in the UK with a total capacity of 4.8GW.
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Sutton Bridge in Cambridgeshire is a Combined Cycle Gas Turbine (CCGT) plant with adesign capacity of 803MW, commissioned in May 1999. Cottam and West Burton inNottinghamshire are both four-unit coal-fired plants, commissioned in 1970. Cottam has acapacity of 2,008MW and West Burton (which also has two open-cycle gas turbines) hasa total registered capacity of 2,012MW.
EDF Energy generated 25.4 TWh of electricity for sale in 2007.
CHAPTER 4. MARKETS STRUCTURE
How do the electricity trading arrangements work?Most of this trading is done in a forwards market, with generators and suppliers enteringinto contracts with each other for every half hour of every day; sometimes years inadvance. Non-physical traders such as investment banks also participate in this trading.For each half hour, they can continue to trade up to 1 hour beforehand, at which pointthe market for that time period is closed. All generators and suppliers have to notifyNational Grid of their planned supply and demand for each half hour of the day.National Grid ensures that supply and demand match using a balancing mechanism,
which includes the accepting of bids and offers from generators and suppliers toincrease or reduce their supply or demand.The Balancing and Settlement Code (BSC) is a legal document which defines the rulesand governance for the balancing mechanism and imbalance settlement processes ofelectricity in Great Britain.ELEXON is known as the Balancing and Settlement Code Company (BSCCo). Theyadminister the BSC.ELEXONs systems capture the contracted volumes from generators and suppliers to seewhat they said they would produce or consume. They also capture data on actualsupply and demand volumes. Any difference must be paid for. So, if a generator hassupplied less than what it said it would for the half hour it must pay for the imbalancebetween its declared and actual position. Or, if a suppliers offer to reduce demand for
a half hour was accepted by National Grid, then it will be paid for that balancing action.Prices and payment are managed by ELEXON through the settlement process.
APX Power UK
Established in 2000 as Britains first independent power exchange, APX Power UK(formerly named UKPX) offers an anonymous market place for integrated trading,clearing and notification for spot and prompt power contracts and a trading platform forcleared forwards contracts. APX Power UK is the cornerstone of the UK spot market and isused by members on a 24/7 basis for the majority of their within day balancingrequirements.
AuctionThe APX Power UK Auction is a day ahead auction, where trading takes place on one
day for the delivery of electricity the next day. The auction is based on day aheadtransactions whereby market members submit anonymous orders electronically, afterwhich supply and demand is compared and the market price is calculated for eachhour of the following day. The APX Power UK Auction facilitates the establishment of amarket trusted index providing focus for liquidity and the creation of a transparent andreliable reference price for electricity in the UK.
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Spot MarketAPX Power UK offers physical electricity products for trading on its 24/7 electronicplatform, EuroLight. The spot market is used for balancing and trading purposes andconsists of half hourly products of electricity as well as discrete standardised blocks madeup of the individual half hours. All Spot products traded on the EuroLight platform areautomatically cleared and notified providing a fully integrated and efficient solution for
members.
The spot products, listed below, contribute to the APX Power UK RPD (Reference PriceData) and Spot Indices.
Contract Period Covered Hrs Opens for Trading
4 Hrs block 6 blocks/day, block 1 begins23:00; block 6 ends 23:00
4 Rolling 7 days
2 Hrs block 12 blocks/day, block 1Abegins 23:00; block 6B ends23:00
2 49 1/2 Hrs prior to start of delivery
1 Hr block Day Ahead Auction,24Hrs/day, begins 23:00;ends 23:00
1 Hourly auction opens for order entry at00:00, 14 days prior to delivery; matchingtakes place at 10:30 daily
Half hourblock
48 periods/day, 1/2 Hr 1begins 00:00; 1/2 Hr 48 toend 00:00
0.5 49 1/2 Hrs prior to start of delivery
Prompt MarketAPX Power UKs base and peak load day products, weekend products and combinationblocks are listed on EuroLight for trading, clearing and notification by APX Power UK. Inaddition, APX Power UK lists base and peak week products.
Contract Period Covered Hrs Opens for Trading
Base week 23:00 Sun 23:00 Sun 168 Rolling 4 weeks, open at any time
Peak week 07:00 19:00 Mon Fri 60 Rolling 4 weeks, open at any time
Weekend base 23:00 Fri 23:00 Sun 48 Rolling 2 weekends, open at any time
Base 23:00 23:00 24 Rolling 7 days
Peak 07:00 19:00 12 Rolling 7 days
Extended peak 07:00 23:00 16 Rolling 7 days
Off peak 23:00 7:00 + 19:00 23:00 12 Rolling 7 days
Blocks 3 + 4 07:00 15:00 8 Rolling 7 days
Overnight 23:00 07:00 8 Rolling 7 days
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CHAPTER 5. CUSTOMERS CLASSIFICATION
The domestic sector accounts for about 32% of the UK energy consumption. Over theyears, governments have made a series of efforts to reduce this consumption through a
significant tightening of the Building Regulations and measures such as Warm Front andAffordable Warmth. However, domestic energy use is still growing.
It is clear that a great deal more needs to be done to stabilize and reduce the amountof energy consumed by this sector if it is to meet the Governments 60% reduction targetby 2050.
The following chart shows the Electricity Demand by sector in 2009
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Average domestic electricity consumption per meter point in 2009 (kWh)
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Average industrial/commercial electricity consumption per meter point in 2009 (kWh)
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CHAPTER 6. TYPE OF SUPPLIERS
Following the restructuring of the electricity supply industry in 1990, the term "Majorgenerating companies" was introduced into the electricity tables to describe the
activities of the former nationalized industries and distinguish them from those of auto-generators and new independent companies set up to generate electricity. Theactivities of the auto-generators and the independent companies were classified underthe heading "Other generating companies". In the 1994 Digest, a new terminology wasadopted to encompass the new independent producers, who were then beginning tomake a significant contribution to electricity supply. Under this terminology, allcompanies whose prime purpose is the generation of electricity are included under theheading "Major power producers" (or MPPs). The term "Other generators" (Auto-generators in the balance tables) is restricted to companies who produce electricity aspart of their manufacturing or other commercial activities, but whose main business is notelectricity generation. Other generators also covers generation by energy servicescompanies at power stations on an industrial or commercial site where the main purposeis the supply of electricity to that site, even if the energy service company is a subsidiary
of a MPP.
Table 6.1 Plant capacity MPPs - Autogeneratos- United Kingdom MW2007 2008 2009
Major power producers
Total transmission entry capacity 75,979 76,783 78,255
Of which:Conventional steam stations: 33,734 32,423 32,431Coal fired 23,008 23,069 23,077Oil fired 3,778 3,778 3,778Mixed or dual fired 6,948 5,576 5,576
Combined cycle gas turbine stations 24,854 26,578 27,932Nuclear stations 10,979 10,979 10,858Gas turbines and oil engines 1,445 1,456 1,560
Hydro-electric stations:Natural flow 1,293 1,392 1,395Pumped storage 2,744 2,744 2,744Wind 1,121Renewables other than hydro and wind 134 213 213
Other generators
Total capacity of own generating plant 6,764 6,661 7,083
Of which:Conventional steam stations 2,924 2,722 2,719Combined cycle gas turbine stations 2,076 2,015 1,946Hydro-electric stations (natural flow) 126 127 131Wind 246 435 739Renewables other than hydro and wind 1,392 1,361 1,547
All generating companies
Total capacity 82,743 83,443 85,337
Of which:Conventional steam stations 36,658 35,145 35,151Combined cycle gas turbine stations 26,930 28,593 29,878Nuclear stations 10,979 10,979 10,858Gas turbines and oil engines 1,445 1,456 1,560Hydro-electric stations:Natural flow 1,419 1,519 1,526Pumped storage 2,744 2,744 2,744Wind 1,042 1,432 1,860Renewables other than hydro and wind 1,526 1,574 1,760
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Major power producers at the end of 2009 were:
AES Electric Ltd., Baglan Generation Ltd., Barking Power Ltd., British Energy plc., CentricaEnergy, Coolkeeragh ESB Ltd., Corby Power Ltd., Coryton Energy Company Ltd., DerwentCogeneration Ltd., Drax Power Ltd., EDF Energy plc., E.On UK plc., Energy Power
Resources, Gaz De France, GDP Suez Teesside Power Ltd., Immingham CHP, InternationalPower Mitsui, Magnox North Ltd., Premier Power Ltd., RGS Energy Ltd, Rocksavage PowerCompany Ltd., RWE Npower plc., Scottish Power plc., Scottish and Southern Energy plc.,Seabank Power Ltd., SELCHP Ltd., Spalding Energy Company Ltd., Western PowerGeneration Ltd.
Additionally, the following major wind farm companies are included, beginning withdata for 2007: Fred Olsen, HG Capital, Renewable Energy Systems, Vattenfall WindPower.
Generation from wind farms owned or operated by the following MPPs that hadpreviously been excluded from the MPP category are now included for 2007 onwards:Centrica Energy, E.On UK plc, RWE Npower plc, Scottish Power plc, Scottish and SouthernEnergy plc.
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ANNEX 1. UK ENERGY PROFILE
Energy Overview
Proven Oil Reserves (January 1, 2010) 3.1 billion barrels
Oil Production (2009) 1.5 million barrels per day, of which 86% wascrude oil.
Oil Consumption (2009) 1.7 million barrels per day
Proven Natural Gas Reserves (January1, 2010)
10.3 trillion cubic feet
Natural Gas Production (2009) 2.1 trillion cubic feet
Natural Gas Consumption (2009) 3.1 trillion cubic feet
Recoverable Coal Reserves (2005) 171 million short tons
Coal Production (2009) 19.7 million short tons
Coal Consumption (2009) 60.2 million short tons
Electricity Installed Capacity (2007) 85 gigawatts
Electricity Generation (2007) 369 billion kilowatt hoursElectricity Consumption (2007) 346 billion kilowatt hours
Total Energy Production (2007) 7.4 quadrillion Btus*
Total Energy Consumption (2007) 9.5 quadrillion Btus*, of which Oil (38%), NaturalGas (36%), Coal (13%), Nuclear (11%), OtherRenewables (2%), Hydroelectricity (0%)
Total Per Capita Energy Consumption(2007)
156 million Btus
Energy Intensity (2007) 4,300 Btu per $2000-PPP**
Environmental Overview
Energy-Related Carbon Dioxide
Emissions (2008)
572 million metric tons
Per-Capita, Energy-Related CarbonDioxide Emissions (2008)
9.4 metric tons
Carbon Dioxide Intensity (2008) 0.26 Metric tons per thousand $1000-PPP**
Oil and Gas Industry
Organization Private sector active in all aspects of industry.
Major Oil/Gas Ports Bacton, St. Fergus, Teesside, Easington, Isle ofGrain, Cruden Bay, Sullom Voe, Flotta, Nigg Bay,Southampton, South Hook.
Foreign Company Involvement Extensive, including many European and U.S.firms. The largest include Total, Chevron, BHP,
Amerada Hess.Major Oil Fields Schiehallion, Foinaven, Alba, Captain, Forties,
Buzzard,
Major Natural Gas Fields Elgin, Franklin, Halley, Scoter, Shearwater
Major Pipelines (length) Forties-Cruden Bay (110 miles), Ninnan-Sullom Voe(110 miles), Piper-Flotta (130 miles), Cormorant-Sullom Voe (93 miles), Norpipe (220 miles),Shearwater-Elgin (SEAL), Scottish Area Gas
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Evacuation (SAGE, 200 miles), Central AreaTransmission System (CATS, 250 miles), Far NorthLiquids and Gas System (FLAGS), Interconnector,Frigg.
Major Refineries (capacity, bbl/d) Fawley (329,500), Stanlow (272,000), KillingholmeSouth Humberside (221,300), South Killingholme
(221,000), Pembroke Dyfed (210,000)Grangemouth (195,700).
Source:http://www.decc.gov.ukhttp://www.eia.doe.govhttp://www.nationalgrid.comhttp://www.edfenergy.comhttp://www.electricity-guide.org.ukhttp://www.elexon.co.uk
http://www.energy.govhttp://www.iesisenergy.orghttp://www.scotland.gov.ukhttp://www.ukpower.co.uk
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