2010 Winter Outlook and a future view

Peter Parsons, National Grid

The winter outlook for 2010/11 is presented for gas and electricity, in respect to weather forecasts, gas demand and supply, electricity demand and supply, whilst also considering supply issues and security of supply. An overview of the mechanisms for meeting the UK environmental targets and Grid’s future scenarios is also provided. In respect to gas, it is highlighted that: the peak day demand forecast is higher than last year; forecast non storage supplies are higher than last year with potential upsides in LNG; storage deliverability is reduced due to less LNG and a review of the actual deliverability from all storage sites; forecast spreads between gas or coal for base load is very small. For electricity, the average Cold Spell Demand forecast is the same as last year and the notified and assumed generation availability is also similar, although there is a large potential upside in new CCGT commissioning during the winter. Based on this and even with uncertainties, the forecast indicates the winter should be manageable, subject to events. In terms of supply issues key factors will be the role of Russia, what happens within the LNG market and how the development of shale gas proceeds. For security of supply, a number of issues that have emerged over previous winters are highlighted including: the availability of LNG; the relationship between Russia and Ukraine; and Norwegian Outages.

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