The UK’s electricity market has followed the lead of surging wholesale gas prices this week to reach weekend highs not seen in a decade. The power market has avoided the severe volatility which ripped through the gas market this week because strong winds helped to supply ample electricity to meet demand. But as freezing winds begin to wane this weekend National Grid will need to use more gas-fired power plants to fill the gap, meaning the cost of generating electricity will surge. Jamie Stewart, an energy expert at ICIS, said the price for base load power this weekend has already soared to around £80 per megawatt hour, almost double what one would expect to see for a weekend in March. National Grid will increase its use of expensive gas-fired power by an extra 7GW to make up for low wind power, which is forecast to drop by two-thirds in the days ahead.
Telegraph 2nd March 2018 read more »