UK POWER: Day-ahead subdued with rising nuclear, healthy wind output
London (Platts)--26Nov2012/923 am EST/1423 GMT
Baseload power for Tuesday delivery eased back Monday morning as nuclear
and wind generation climbed, but uncertain weather has continued to support
the latter parts of the week, market sources said.
On the OTC market day-ahead baseload was last heard at GBP48.10/MWh,
down GBP2.60 from where Friday closed for Monday baseload, while peakload
power was last heard GBP2.25 lower than Friday's close at GBP57.25/MWh.
Traders said very little OTC market activity has taken place on the
day-ahead contracts following the N2EX day-ahead baseload power auction which
outturned at GBP45.95/MWh for around 3GW of power.
"There is selling interest, just no buyers," said the trader, who added
that interest in Wednesday baseload has seen the contract trade at around
GBP49/MWh as participants hedge against weather risk following divergent
forecasts for this week.
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"[Forecasters] know the cold snap is coming -- but until it arrives it
is just impossible to forecast how long it could be here for," the trader
While Wednesday baseload is supported by weather risk, Tuesday baseload
remains subdued by stronger nuclear generation output following the return of
the Heysham 1-1 reactor and healthy wind generation.
EDF Energy returned its 610 MW Heysham 1-2 nuclear unit to service
Saturday night following a six-week unplanned outage following a cooling
water pipe leak.
The return of Heysham 1-1 has bolstered total UK nuclear power output to
above the 7 GW mark, National Grid data shows, to account for 15.3% of the
Market analysts said Monday: "There are a further 4 reactors due back
online this week with a further 2 GW of nuclear reactors being added back to
the grid before the weekend."
In addition, wind generation remains healthy at almost 2.5 GW midday and
is forecast to climb to almost 3.3 GW over Tuesday's peak daily power demand
Continental power imports remain strong at just shy of 2 GW midday (or
4.4% of the energy mix) while gas and coal make up the lion's share of the
energy mix at 13 GW and 19.6 GW respectively.