Gas outlook to brighten in August while electricity prices remain acute

Gas supply challenges look more settled as we approach August, but the challenges faced by renewable power generation and the need to offset fluctuations with on-demand supplies put an upward pressure on electricity supply costs

The Big Zero report

In this episode of the Resonance podcast, you will learn:

  • NS2 expected into Europe early in 2022. Why access to gas in Europe for the U.K. matters
  • Gas – A return to steady LNG supplies more likely in August, and some key maintenance for gas infrastructure coming to an end means we expect to see an improvement in supply
  • Sustained period of oil bullishness coming to an end? OPEC signals increased production, compounded by market caution over economies attempting to reopen, as the UK’s Freedom Day signals an end to lockdown.
  • While the Impact of decarbonisation sees the U.K. carbon market quite settled, and the Cost Containment Mechanism (CCM) within the scheme may be triggered in August for the first time. What is it, how and will it control costs?
  • Fluctuations in wind power generation are still having an acute impact on power prices. What does that mean for prices and generation mix? Can we achieve what we need to without seeing the rolling blackouts familiar to businesses operating in California, where decarbonisation without a managed approach is causing challenges?
  • A greater dependence on imports are proving problematic for the U.K. and power prices now we are outside of the EU, but why?

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