Energy Wholesale Market Review, 22 November 2019

• Day-ahead peak power fell 22.8% to £50.0/MWh, with high wind generation midweek.
• December 19 power climbed 1.4% at £47.5/MWh and January 20 power increased 1.2% to £50.4/MWh.

• Q120 power moved 1.0% higher to £49.8/MWh.
• The Annual April 20 contract rose 2.0% to £49.0/MWh, 10.2% lower than the same time last year (£54.48/MWh).

Forward curve comparison

Annual October Contract

• Day-ahead peak power fell 22.8% to £50.0/MWh, reflecting the drop in baseload power prices.
• December 19 peak power was up 1.7% at £53.8/MWh, and January 20 peak power climbed 1.2% to £57.5/MWh.

• The Annual April 20 peak power gained 1.7% to 54.3/MWh.
• This is 11.7% lower than the same time this year (61.5/MWh).

Forward curve comparison

Annual October contract

Seasonal baseload power contracts

Seasonal baseload power curve

• All seasonal power contracts increased this week, up 1.5%.
• Summer 20 and winter 20 power lifted 2.5% and 1.5% respectively, rising to £45.4/MWh and £52.5/MWh.

• Seasonal peak power contracts raised by 1.4% on average.
• Summer 20 and winter 20 peak power gained 2.4% and 1.1% respectively, rising to £49.3/MWh and £59.4/MWh.

Oil and Coal

Carbon

• Brent crude oil inched up 0.6% to average $62.2/bl this week.
• Prices are currently 2.8% lower than at the same time this year.
• Reports of high build of US crude inventory levels early in the week initially weighed on prices, though they recovered on later reports that stocks increased less than originally reported.
• API 2 coal prices reversed last week’s gains, rising 0.8% to $63.7/t.

• EU ETS carbon fell by 2.5% to average €23.8/t.
• Price changes and activity was minimal again this week.
• The EU parliament will vote this week on whether to declare a climate emergency.
• If voted for, it will pressure the European Commission to act with more urgency on carbon emissions.

Wholesale price snaphot