* Grid expects de-rated margins of 6.6% with reserve services * Eggborough return, EWIC outage impact outlook positively The UK's electricity margins will be "tight but manageable" for winter 2016/17, with an improved de-rated margin expectations of 6.6% which includes the 3.5 GW of contingency balancing reserve services procured for the period, network operator National Grid said Friday.
The current de-rated margin expectation is higher than the Grid's previous view of 5.5% as the return of Eggborough coal-fired power unit-4 and reduced export capacity on the UK-Irish East West Interconnector (EWIC) have "had a positive impact" on the winter outlook, National Grid said in its 2016/17 Winter Outlook Report.
But the de-rated margin excluding contingency balancing reserve services will be a tight 1.1%, the Grid added.
Eggborough power station said in July its 430 MW unit-4 would return to the wholesale market this winter, alongside the two units providing supplemental balancing reserve (SBR) services.
At the same time an outage on EWIC will reduce expected exports to Ireland by 250 MW.
National Grid said it expects a total maximum technical capacity of 73.7 GW of generation, with a de-rated generation capacity of 55 GW, after accounting for any unplanned outages, breakdowns and/or any other operational issues that might stop the plant from producing power.