UK Electricity Market – Reform and Development
Dr Zhibo Ma
Wednesday, 19 June 2019
On Wednesday, 19 June 2019, China Construction Bank executives had honour for inviting Dr Zhibo Ma to give presentation in CCB Seminar titled ‘UK Electricity Market – Reform and Development’. Dr Ma is a senior electric engineer of National Grid Operational Centre and a manager in charge of the European Market Day Ahead Congestion Forecast in National Grid. National Grid is a British strategic company that employs its owned assets for electricity transmission, gas transmission, and system operations within England and Wales. Dr Ma has extensive experience and is well-versed on the UK Energy Market. He has been working for National Grid for the past 10 years and is an expert on Electricity Market Reform, European Code, and the UK-China Energy Market.
This talk is well timed, firstly because the UK energy market is undergoing a major change at the moment, especially when it is facing regulation, increased costs, stiff competition, new technologies, supply and storage issues, as well as an increased demand for renewable consumption. Secondly, the energy talk lined up with the press release from gov.uk where the government announced that Innovate UK has teamed up with ENGIE to seek out and fund innovative projects that can speed up the development of a sustainable energy transition.
Dr Ma first took the CCB executives through a brief history of the development of the energy market. In particular, he highlighted the changes made during and after the Thatcher government, which was considered within the energy market as the turning point of the energy market; When the Thatcher government rose to power, its agenda was to roll-back the influence of the state and the energy market was the first target. When Mrs Thatcher took office, the gas, electricity, and coal industries were all state-owned and there was a large state oil company. When she left office, the entire energy market was completely privatized, with the exception of coal, which was only privatized in 1994. Next, Dr Ma gave a brief overview on the electrical operations within England and Wales, in particular, he highlighted the key players within these operations and the different parts they are responsible for.
The key part of Dr Ma’s talk is linking the energy market to investment and financial market. As energy prices are extremely volatile, and that energy is the most tactical and political product in the world, energy prices affects not only industries, but countries as well. To highlight this important role, Dr Ma focused on the interactions and effects of energy on trading in Spot Market and in the Future Market. With respect to the trading of energy within Great Britain, Dr Ma explained the notion of ‘gate closure’ and how it functions as a balancing mechanism so as to help the executives to understand the balancing and settlement process when trading in the UK market.
It was an engaging and interactive talk where the executives learned a lot about the energy market from the seminar. They asked many technical and general questions about the energy market and trading within the energy market. Dr Ma answered all the questions with aplomb. It was certainly a very informative seminar and a great learning opportunity!
|Last modified: 2019-06-24 09:58:16 by Zoe Toone||Created at: 2019-06-24 09:58:07|