News in brief from the world of energy.
- National Grid has published its 2015 Summer Outlook. It forecast generation margins to be at a comfortable level. The peak weather-corrected high summer period demand is the lowest ever, at 37.5GW.
- The company has attributed this to the increase in embedded solar PV installations, which have nearly doubled from 2.4GW to 4.4GW in a year. Low demand as solar power ramps up towards the summer is likely to weigh on prices.
- Day-ahead gas decreased 1.0% month-on-month, averaging 46.9 p/th. Long-term gas contracts also declined, with the winter 15 contract averaging 1.0% less in April at 50.5 p/th. The annual October 15 contract ended the month at a six-week low of 46.5 p/th.
- The gas market is being affected by above seasonal norm temperatures which reduced demand and pulled down day-ahead prices. The supply outlook is healthy, with further LNG deliveries expected next month.
- Day-ahead power increased 7.4% to average £44.0/MWh. Prices ended the month at £42.8/MWh.
- The winter 15 contract remained unchanged at an average of £46.8/MWh this month. The annual October 15 contract climbed 0.5% to average £45.1/MWh.
- Short-term power prices increased following a drop in wind generation, which was down 44% month-on-month.
- On the European markets, average GB prices increased month-on-month but prices in other European markets fell.
- French power decreased 7.8% to average £31.0/MWh.
- At the end of the month, GB day-ahead prices were 51.2% higher than the European average.