Gas generation in traded energy markets

In this paper the author moves away from the operational aspects of the transmission systems to the resulting market consequences of the interaction between the gas and electricity systems. The author discusses four areas of interest. Firstly, he looks briefly at the forward price curves for UK gas and electricity. The author then looks at where gas generation fits in the current merit order, relative to other fuels, and then consider where it might fit in the future. The author then develops this theme to talk about how power price exposure might be managed within the gas market in the new world. Finally, the author makes a few observations relating to the interaction between the gas and power markets under RETA and RGTA