London — UK prompt power prices continued to fall on Monday, with the baseload day-ahead contract dropping to more than a three-week low, on expectations of high wind power production, sources said.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
Price of baseload power for Tuesday delivery fell below GBP40/MWh, trading at GBP38.55/MWh before Platts 11:00am London time close, dropping GBP2.40.
The baseload spot contract was previously assessed below Monday's close on May 11 at GBP38.30/MWh, according to Platts pricing data.
The Tuesday peakload power price was GBP1.40 lower than Friday's assessment of Monday power at GBP44.50/MWh before midday.
The UK's base spot auction also fell and was nearly GBP1 below the OTC value at GBP37.41/MWh N2EX and APX exchange data showed.
"Last week [prices] had been strong but it changed on Sunday.
The day-ahead is trading low mostly due to wind," a trader said.
According to National Grid, peak wind power generation is set to reach 6.9 GW at midnight Tuesday, a touch below Monday's wind forecast of 7.1 GW, keeping the system well supplied.
In addition to healthy supplies, the grid's demand forecast shows that peak power demand on Tuesday is likely to fall to 34.8 GW from Monday's peak demand of 38.2 GW.
At midday Monday, gas-fired power plants in the UK were supplying 32% of the UK's electricity at 10.7 GW, while wind power output stood at 4.4 GW, or 13% of the fuel mix.
Nuclear power stations, producing 7.5 GW (22.4%) of power, surpassed coal-fired power production at midday Monday which reached 6.6 GW (19.8%) to the grid, National Grid data showed.