Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 22nd March 2024
This week, we observed primarily bullish movements across wholesale gas and power prices, with exceptions coming from shorter-term power contracts due to recent mild weather helping to lower demand, and higher wind generation on the system allowing prices to soften. This resulted in day-ahead baseload power recording a drop of 4.1% to £65.00/MWh, and day-ahead peak power prices slipping 17.7% to £67.50/MWh. However, all tracked gas contracts registered gains, with day-ahead gas rising 8.0% to 71.00p/th, following reduced supply from both the Norwegian and UK Continental Shelf as maintenance limits flows from gas terminals. April 24 gas was up 6.0% at 70.60p/th, and May 24 gas increased 5.2% to 69.30p/th, although present gas storage levels across the continent remain strong, limiting higher gains that could have been registered. All seasonal gas contracts boosted last week too, up by 2.6% on average, with both summer 24 and winter 24 gas increasing 3.8% and 3.3% respectively, lifting to 69.00p/th and 81.50p/th. Likewise, all seasonal power contracts boosted this week, up on average by 1.8%, as summer 24 and winter 24 expanded 1.2% and 1.5% respectively, rising to £63.25/MWh and £75.60/MWh.
Wholesale price snapshot– Friday-on-Friday
Energy Wholesale Market Review Week Ending 22nd March 2024.
Energy Wholesale Market Review Week Ending 15th March 2024
Mixed movements were registered across tracked gas and power contracts this week, firstly finding upward support from disruption to Norwegian flows as maintenance occurs at fields across the Norwegian Continental Shelf effecting front-month contracts, in tandem with reduced LNG send-out from GB terminals. Consequently, April 24 gas was up 0.6% at 66.60p/th and May 24 gas increased 0.6% to 65.90p/th. Contrary to this, day-ahead gas fell 4.0% to 65.75p/th, as above-average temperatures across the UK act to decrease demand for gas-fired assets in the short-term. Likewise, day-ahead power fell 2.2% to £67.75/MWh, following losses across its gas counterpart. Elsewhere, most seasonal gas contracts declined last week, down by 0.7% on average. While summer 24 gas increased 0.3% to 66.50p/th, winter 24 gas dropped 0.1% to 78.90p/th, and summer 25 gas fell 1.0% to 72.50p/th. Opposing this, most seasonal power contracts boosted this week, up on average by 0.5%, as summer 24 and winter 24 expanded 0.8% and 0.7% respectively, rising to £62.50/MWh and £74.50/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 15th March 2024.
Energy Wholesale Market Review Week Ending 8th March 2024
Predominantly bullish gas price movements arose this week due to maintenance at gas terminals across the Norwegian Continental Shelf limiting flows to GB. Likewise, below-average temperatures acted to bolster domestic heating demand and increase the requirement for gas-fired generation. As a result, day-ahead gas rose 6.0% to 68.50p/th. Similarly, day-ahead power rose 1.8% to £69.25/MWh, with decreased wind generation projections further increasing the requirement for gas-fired assets to meet demand. Moreover, maintenance at GB nuclear stations acts to limit its contribution to the generation mix. Similarly, April 24 gas was up 5.4% at 66.20p/th, and May 24 gas increased 4.8% to 65.50p/th. Most seasonal gas contracts increased this week, however a 12.6% drop to the summer 26 gas contract price led to an overall decrease of 0.4% across seasonal gas contracts. All seasonal power contracts rose, however, up on average by 3.6%, as summer 24 power increased 4.2% to £62.00/MWh, and winter 24 grew 3.8% to £74.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 8th March 2024.
Energy Wholesale Market Review Week Ending 1st March 2024
All power and gas contracts increased this week, amid lower temperatures boosting gas heating demand, and low wind outturn in the latter half of the week. Day-ahead gas rose 13.5% to 64.60p/th, following colder temperatures supporting rising gas heating demand, coupled with low LNG send out from the South Hook terminal on Friday. Day-ahead power rose 18.3% to £68.00/MWh, following its gas counterpart, with further gains supported by easing wind outturn projections, increasing reliance on gas-fired generation. Similarly, April 24 gas was up 13.7% at 62.80p/th, and May 24 gas increased 11.4% to 62.50p/th. All tracked seasonal gas contracts boosted this week too, up by 9.3% on average, while both summer 24 and winter 24 gas increased 12.4% and 8.2% respectively, lifting to 63.50p/th and 77.50p/th. All seasonal power contracts boosted this week, up on average by 6.7%, as summer 24 and winter 24 expanded 10.2% and 5.6% respectively, rising to £59.50/MWh and £71.30/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 1st March 2024.
Written By Graham Paul
