A decent chunk of electricity from renewable energy sources today is helping cap power prices for next month, suggests the daily market report from npower.
Steve Walker, Client Portfolio Manager at npower said: “Markets have dipped this morning with key drivers being an oversupplied prompt gas market, demand beginning to fall after the recent cold snap and good renewable production.”
He told ELN over the phone power prices were around 30p lower for the front month this morning, though prices further along the curve (i.e. further into the future) are looking “pretty flat”.
In the report, he added: “Wind feed-in is set to peak at 7GW today, medium range forecast continues to suggest elevated levels of generation through December.”
He said this coincides with power demand falling in the run up to the weekend.