Wind generation helps ease demand pressure
Friday saw another relatively subdued wholesale market trading session, with activity across global markets easing due to the US Independence Day holiday.
Despite the quieter geopolitical backdrop, gas-fired power demand remained elevated across much of Europe, driven by a prolonged heatwave.
As a result, the Winter 25 front-season contract recorded a modest weekly gain of 1.2%, rebounding from the sharp 16.6% decline observed the week prior.
On the LNG front, though there are no vessels scheduled to arrive at British terminals over the next 2-week outlook, LNG storage is just short of the same time last year and sendout continues at a steady rate of circa 9mcm/d, enough to meet around 6% of seasonal normal demand in the week ahead.
On the electricity front, the baseload prompt and near-curve saw the biggest drops on Friday, driven primarily by a sharp increase in wind generation that helped to offset a decline in interconnector imports.
Great Britain notably served as a net power exporter to France, the Netherlands and Belgium. This highlights greater power grid sensitivity to elevated temperatures in the continent, attributed to wider use of air conditioning.
Wind output nearly doubled compared to Thursday, surging from 6.6 GW to 12.2 GW. This substantial increase in renewable generation significantly reduced reliance on gas-fired power, which fell to just 3.8 GW—representing only 13% of the total power mix.
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Price commentary courtesy of Crown Gas and Power 