Prices down amid strong renewable output
NBP gas prices continued to go down on Thursday after the EU dismissed calls to hasten its phase-out of Russian fossil fuels.
Though the US had previously floated ideas to increase Russian supplies to Europe as part of ceasefire negotiations, stalling diplomatic progress and intensifying conflict in the Ukraine war.
This prompted the US Energy Secretary to request that the EU phase out all Russian fuel imports earlier than planned, though the EU’s Energy Commissioner maintained that the bloc intended to stick to its existing deadline of 1st January 2028.
This may have fostered a sense of certainty amongst constantly shifting market fundamentals and geopolitical developments, boosting confidence in supply, especially along the far-curve.
Strong wind generation continued to exert downward pressure on baseload power prices on Thursday, as Storm Amy drove a surge in renewable output.
The storm contributed to the highest level of wind power generation in Britain since February, surpassing Wednesday’s figures and reaching a peak of 17.9GW. This accounted for 55.3% of the total electricity generation mix, significantly curbing the need for gas-fired power and reducing cross-border electricity imports.
The abundance of wind energy not only displaced more carbon-intensive sources but also amplified bearish sentiment in the power market.
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Price commentary courtesy of Crown Gas and Power 