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UK prompt power price surges 8% as wind output set to more than halve

London (Platts)--29 Jan 2014 719 am EST/1219 GMT


The price for day-ahead baseload surged higher Wednesday morning amid forecasts that wind power generation is set to more than halve from current levels above 4 GW to less than 2 GW, market sources said.

On the OTC market, day-ahead baseload was last heard 8% higher on the day at GBP49.40/MWh by Platts 11.00 GMT close, while peakload power rose to GBP55.70/MWh from GBP52.50/MWh at Tuesday's close.

Strong gains were also seen on the N2EX day-ahead baseload power auction which outturned at GBP54.02/Mwh, from Tuesday's GBP45.87/MWh result.

Power prices rose despite softer NBP gas prices as Thursday's generation mix was expected to include a stronger share of more expensive gas-fired power when wind output falls.

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Shortly before midday, National Grid data showed wind power generation at 4.5 GW. That was expected to steadily decline from Wednesday afternoon to levels below 2 GW and as low as 1 GW Thursday.

As a result, gas-fired power was expected to increase from below 13 GW at midday Wednesday. At the same time coal-fired power was pegged at 17.5 GW and nuclear power at 7.7 GW.

Continental power imports remained strong at around 3 GW.

The power market posted strong gains despite softer NBP gas prices, with the day-ahead drifting down to 63.45 pence/therm at 11.00 GMT, down 0.35 p/th on the day, while the within-day traded down 0.65 p/th to 63.25 p/th.

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