The UK power market is slow to get trading today, according to npower’s daily market report.
Peak power margins are set to be just above 12GW, supported by “decent” wind generation of around 3GW. Predictions suggest it could reach just over 4GW, said Alex Guiot from the Optimisation Desk.
CCGT is providing roughly 15GW, making up 49% of the stack.
Mr Guiot added: “Oil is holding onto its gains from the lows seen following the Brexit vote and weakness in the pound is providing upside whilst length in the gas system provides the downside risk.”
The gas system has opened in length, “which is not surprising on a Friday”. The current linepack is forecast to be roughly 8mcm oversupplied.
This is as the unplanned disruptions affecting Norwegian supply end although current flows through Langeled are still “reasonably low” at 17mcm as continuing planned cuts due to yearly maintenance affect Kollsness and Norwegian field, the DMR states.
Mr Guiot went on: “The pound is currently valued against the Euro at €1.198. The FX markets remain volatile however some UK manufacturing PMI [Purchasing Managers’ Index] data due out later this morning may provide some direction. There is also a whole host of European data which could affect movements in the currency if it can win out against the post Brexit uncertainty.”