Increasing volatility driven by greater penetration of renewable power will require a major increase in system flexibility, according to Ørsted CEO, Henrik Poulsen. Posting half-year results, the company demonstrated resilience to the impacts of Covid-19, with operating profit up 11 per cent to DKK 8.2bn (£991m), though second quarter earnings were negative. The UK business was most impacted in terms of demand for power, said Poulsen and he expects “similar, maybe slightly smaller impacts” in the second half of the year. In some cases, energy suppliers and their business customers may need to resolve “important” discussions around contractual arrangements, he said. The UK electricity system operator has had to work harder to keep the system stable due to exceptionally low demand as a result of Covid, with a significant increase in balancing costs. With the ESO planning to run the system entirely on renewables when possible within five years, this summer has provided a glimpse of the future.
The Energyst 12th Aug 2020 read more »