The cheapest energy deals in the market are set to rise as wholesale costs rebound and green levies increase, industry experts have forecast. Several small suppliers have already started to increase their one-year fixed-price deals, with Ovo Energy announcing a rise of 7.6pc, or £63 a year, for new customers. The company said its costs for purchasing gas for the year ahead were up by 23pc since January, and electricity costs up 16pc, while non-commodity costs such as power plant subsidies had also risen and were set to rise further. Fears of a supply crunch this winter could also lead to further wholesale electricity price increases, experts warned. Industry consultant Cornwall Energy said its analysis showed that costs for suppliers had been broadly falling since the start of 2014 but it believed that “the cost s of domestic energy supply are reaching the bottom of their current cycle”, with wholesale prices now ticking up.
Telegraph 14th June 2016 read more »
By 2028 it will be cheaper to generate power by building a new onshore wind farm than by turning on an existing gas plant, according to an annual report by Bloomberg New Energy Finance. The report said the UK’s generation mix will “change dramatically” over the next 25 years, with new utility-scale solar also becoming cheaper than existing gas by 2033. Between now and 2040 $186 billion will be invested in the UK’s energy system, the report said, with 77 per cent being spent on renewables. As a result fossil fuels’ share of the generation mix will roughly halve to 30 per cent, while renewables share will roughly double to 70 per cent. Despite this gas will remain the largest single source of power (110TWh). It said government support for “uneconomic nuclear and offshore wind capacity will account for nearly half of all investment” with $56 billion being spent on offshore wind and $34 billion being spent on nuclear. Solar will account $49 billion of spending, largely driven by domestic uptake. Because of the government’s support, the report said offshore wind and nuclear will make up a majority of new capacity between now and 2030, with gas and small-scale solar also making significant contributions.
Utility Week 14th June 2016 read more »