POWER: UK Day Ahead Costs Remain Elevated, Eye Drop for 15 March Delivery
Day-ahead prices in the UK remained elevated from the previous session as wind output in the country is expected to drop by just over 2GW on the day, offsetting lower demand. However, spot prices could be weighed down for 15 March delivery as wind is anticipated to rebound, coupled with typically lower weekend demand.
- The UK day-ahead spot settled at £103.77/MWh from £103.53/MWh on the previous day.
- Wind output in the UK is forecast to drop to 3.48GW during base load on Friday from 5.91GW on Thursday according to SpotRenewables.
- Wind will then rise to 4.49GW, or a 16% load factor on 15 March (Sat)– which could weigh on costs, coupled with a drop in demand.
- Mean temperatures in London have been revised up over 13-18 March by as much as 1C and will flip above the 30-year norm on 19 March – remaining above until at least 27 March.
- Average temperatures in London are expected to drop to 3.08C on 14 March from 4.22C on 13 March.
- Power demand in the UK is forecast to drop to 33.70GW on Friday from 34.38GW on Thursday according to Bloomberg. Demand will then fall further on 15 March to be at 31.04GW.
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