This week saw seasonal electricity prices rise slightly during the first couple of days, before falling over the last three. There were lower renewable generation so reducing renewable output which is likely to push day-ahead prices higher as costlier gas-powered generation fills the supply gap.
Also UK Nuclear Capacity is expected to exceed 90% by the week’s end and reach 100% early next week with multiple reactors returning following maintenance work.
There are Strong Interconnector Flows with Stable UK power imports include 3 GW from France, 1.4 GW from Norway & 1 GW from Belgium
The day-ahead prices are likely to increase this week as weaker renewable generation increases reliance on expensive gas-fired power. This could create spillover buying pressure in the front-month contract, as market suppliers hedge their positions. In the mid-term, milder weather forecasts suggest demand may reduce below expectations, potentially capping price gains.
Gas prices began the week slightly higher than the previous week’s close but fell steadily thereafter.