Gas for power demand spikes to drive prices
Low wind drives gas for power demand and pressurises the NBP on Tuesday.
According to the latest run of the Crown Gas and Power 14-day model, demand is expected to remain below seasonal norms until at least 23rd June.
Additionally, the incoming ‘Spanish plume’ weather event is forecast to drive UK temperatures higher in the latter half of this week, further suppressing any residual heating demand.
Carbon prices also weighed on longer-dated contracts. Data from ICE shows that the benchmark Carbon EUA contract fell by 2.1% day-on-day, retreating from its highest level since February.
On the power front, the latest NESO week-ahead generation forecast projects that average daytime and overnight (minimum) solar generation will reach 5.2GW between 11th and 17th June.
This marks a moderate increase from the 3.4GW recorded last week. Meanwhile, wind generation is expected to remain relatively stable, with no significant change anticipated in output levels.
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Price commentary courtesy of Crown Gas and Power 