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UK prompt power prices on weak NBP, strong wind drive

https://www.chemnet.com   Aug 28,2014 Platts
UK prompt power prices fell Wednesday as strong wind generation will likely help meet increased demand, while weak spot gas prices dragged on the market, sources said.

Baseload power for Thursday delivery was last heard trading at GBP37.95/MWh before the Platts 11:00 am London time close, while the peak day-ahead was at GBP41.75/MWh. Both the prompt contracts were down GBP1.25.

The UK's base day-ahead auction outturned marginally above the OTC price on Wednesday at GBP38.12/MWh on the N2EX and APX exchanges.

Peak demand was expected jump to nearly 38 GW Thursday evening, compared with maximum demand forecast for 36.5 GW Wednesday, National Grid data showed.
However, surplus margins are set to shrink only slightly to 12.9 GW Thursday, from Wednesday's margin expectations of 13.1 GW, the data showed.

Temperatures are likely rise 2-3 degrees Celsius above seasonal norms in Birmingham, London and Manchester Thursday, forecaster CustomWeather said.

On the supply side, peak wind generation was forecast to hit 4.1 GW Thursday, above 3.9 GW forecast for Wednesday, the grid data showed.

Wind accounted for 3.6% of the total generation mix in the UK at midday, contributing 1.3 GW of power to the system. Power from gas-fired plants increased amid falling gas prices to 15.7 GW, or 43.2% of the total, from 14.7 GW at midday Tuesday.

The UK NBP same day and day-ahead contracts retreated to trade at 42.15 pence/therm and 42 p/th, shedding more than a penny each at 11:00 am.

Coal-fired power generation picked up momentum, reaching 8.5 GW at midday to grab 23.4% of the UK's energy mix, up from below 6 GW midday Tuesday, the grid data showed.

Nuclear power output stood at 6 GW at midday, or 15.9% of the total, down from the midday Tuesday level of 7.5 GW.
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