Wholesale prices increase as output from wind generation falls away

Gas prices increased at the NBP on Tuesday amid a sharp uptick in CCGT offtake.

Gains were observed across most curve contracts, with the front-end leading the rally; the August 2025 contract rose by more than 2p/therm (0.068 p/kWh) when compared to its previous settlement.

According to National Grid data, wind generation fell significantly by 53% from the previous session.

This decline in renewable output prompted a substantial increase in gas-fired power reliance, which surged by over 66% on the day, likely providing support to near-dated contract prices.

On the power side, baseload prices remained relatively stable throughout the session.

While bullish sentiment from a sharp drop in wind output persisted, this was perhaps offset by a notable increase in solar generation.

Further data from National Grid shows solar output rose by over 23% day-on-day, potentially helping to alleviate some concerns around supply tightness and contributing to the overall firmness in power prices.

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Price commentary courtesy of Crown Gas and Power