Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th September 2021
Movements in gas and power markets varied this week, but generally continue to hold onto the more elevated price points set in recent weeks. In support of this, day-ahead gas rose 3.4% to 166.00p/th, despite much stronger Norwegian gas supply into GB and higher domestic production. Gains on the day-ahead gas contract can however be partially attributed to the continued undersupply of European gas in storage. Day-ahead power fell 58.2% to £138/MWh, with losses driven by significant growth in wind outturn across much of this week, particularly by comparison to previous weeks where outturn has been incredibly low, squeezing supply margins as a result. October 21 gas was up 8.6% at 175.42p/th, and November 21 gas increased 10.1% to 183.37p/th. All seasonal gas contracts boosted this week, up by 9.4% on average, while both winter 21 and summer 22 gas increased 9.4% and 11.2% respectively, lifting to 180.10p/th and 91.99p/th. Seasonal power contracts saw similar movements, up on average by 9.3%, as winter 21 and summer 22 expanded 13.3% and 8.9% respectively, rising to £187.00/MWh and £98.00/MWh
Wholesale Price Snapshot
Energy Wholesale Market Review Week Ending 24th September 2021.
Energy Wholesale Market Review Week Ending 17th September 2021
The bullish and unprecedented highs observed across wholesale markets continued again this week, with record highs seen across gas and power day-ahead markets. Day-ahead gas rose 15.7% to 160.50p/th, reaching an all-time high on 15 September at 187.50p/th, driven by higher gas-for-power demand and a backdrop of tighter gas markets with continuing maintenance works across the Norwegian Continentel Shelf, and low European gas storage volumes. Day-ahead power shared strong bullish trends seen in gas contracts, rising 93.0% to £330/MWh, also reaching an all-time high of £540/MWh on 13 September, driven by the continuation of low wind output across the week and tight system margins. October 21 gas was up 14.6% at 161.55p/th, and November 21 gas increased 14.4% to 166.50p/th. All seasonal gas contracts boosted this week, up by 5.1% on average, while both winter 21 and summer 22 gas increased 14.4% and 4.0% respectively, lifting to 164.58p/th and 82.76p/th. All seasonal power contracts boosted this week, up on average by 6.2%, as winter 21 and summer 22 climbed 19.6% and 4.7%, rising to £165.00/MWh and £90.00/MWh respectively.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 17th September 2021.
Energy Wholesale Market Review Week Ending 10th September 2021
Despite some Friday-on-Friday downward movements in day-ahead contracts, gas and power contracts have generally held onto the significant and unseasonably highs set across recent months. In support of this, day-ahead gas rose 4.3% to 138.75p/th, aided by periods of system undersupply and lowering wind output calling for higher gas-for-power demand. Day-ahead power fell 28.8% to £171/MWh, but remained high. Higher price points set in gas markets have supported power markets, combined with low wind outturn in the week and tighter system margins. As of 8 September, a new day-ahead baseload power record high was set, reaching £285/MWh. October 21 gas was up 6.2% at 140.93p/th, and November 21 gas increased 6.8% to 145.59p/th. All seasonal gas contracts boosted this week, up by 4.0% on average, while both winter 21 and summer 22 gas increased 7.2% and 5.4% respectively, lifting to 143.83p/th and 79.60p/th. Seasonal power contracts saw similar movements, up on average by 5.6%, as winter 21 and summer 22 expanded 8.0% and 4.4% respectively, rising to £138.00/MWh and £86.00/MWh.
Wholesale Price Snapshot
Energy Wholesale Market Review Week Ending 10th September 2021.
Written By Graham Paul
