Concerns about system adequacy have led to the establishment of capacity mechanisms in a number of regulatory areas. Against this background, it is essential to accurately quantify the contribution to security of supply that results from interconnectors to neighbouring systems. This paper introduces a definition of capacity value for interconnection between two systems in the form of a capacity allocation curve. Four power flow policies are proposed to encompass the full range of possible market outcomes that may affect the capacity value. A convolution-based method is presented to efficiently compute and compare capacity allocation curves, and it is applied to a model system that is inspired by Great Britain's interconnection with the continental Europe. The results indicate areas of interest for the coordination of capacity mechanisms. ... Read more

Ensuring energy security is a central goal of energy policy in most countries. The UK is no exception. Throughout the increasingly rapid changes in the energy sector over the past few years, energy security has remained high on the policy agenda. This winter has been a good example. Whilst gas demand has fallen significantly in the last decade, recent cold weather and infrastructure problems have tested the resilience of the UK gas system. This report explores how the security of the UK energy system could change in the future. UK energy security will be shaped by a range of factors including action to reduce emissions, technological change and shifting geopolitics – including the UK’s changing relationship with the EU due to Brexit. ... Read more