UK Warns of Tight Power Market as Deep Freeze Takes Hold

(Bloomberg) -- The UK’s grid operator issued a power-market warning saying there is an insufficient buffer between predicted supply and demand on Wednesday as wind output falls at the same time as temperatures plunge.

The three-hour notice period is set to begin at 4 p.m. London time on Wednesday, according to the National Energy System Operator. Wind generation is forecast to dip below 3 gigawatts in the midst of a cold snap, with average temperatures forecast just above freezing Wednesday, well below the 30-year normal for this time of year.

“This is a routine tool that we use most winters, and means we are asking market participants to make any additional generation capacity they may have available,” a NESO spokesperson said in a statement. It doesn’t “mean electricity supply is at risk.”

The warning is one of several issued this winter and highlights the risk of building out wind turbines without sufficient back up for days when it’s dark, cold and windless. Periods of relatively low wind can drive prices higher especially when demand for heating is increasing. The government is planning to build more renewables in its bid to decarbonize electricity production by 2030.

The UK’s Met Office has warnings in place for snow and ice across the country on Wednesday and expects to issue more for later in the week too.

Temperatures could fall to the lowest this winter, reaching -15°C in locations with lying snow in Scotland or northern England, according to Chris Almond, deputy chief forecaster at the Met Office.