Energy Wholesale Market Review, 3 September 2021

• Day-ahead power surged 12.1% to £240.0/MWh, with higher-gas-for power demand and low levels of wind generation forecast early next week.
• October 21 power jumped 10.5% to £126.0/MWh and November 21 power rose 8.1% to £132.0/MWh.

• Q421 power moved 10.7% higher to £129.5/MWh.
• The annual October 21 contract rose 7.5% to £105.1/MWh, 118.6% higher than the same time last year (£48.1/MWh).

Annual October Contract

• Day-ahead peak power leapt 161.8% to £305.0/MWh, taking direction from its baseload counterpart.
• October 21 peak power gained 8.3% to £131.3/MWh, and November 21 peak power lifted 6.1% to £151.5/MWh.

• The annual October 21 peak power contract rose 4.3% to £114.1/MWh.
• This is 110.6% higher than the same time last year (£54. 2/MWh).

Forward curve comparison

Annual October contract

Seasonal baseload power contracts

Seasonal baseload power curve

• All seasonal power contracts saw gains this week, up on average by 5.2%.
• Winter 21 power rose 9.7% to £127.8/MWh and summer 22 power gained 4.3% to £82.4/MWh.

• Seasonal peak power contracts decreased by 0.9% on average, this week.
• Winter 21 climbed 7.2% to £142.3/MWh, while summer 22 peak power was unchanged at £86.0/MWh.

Oil and Coal

Carbon

• Brent crude oil lifted 3.3% to average $72.4/bl, this week.
• Prices were supported by signs of global demand recovery and extended outages in the Gulf of Mexico as a result of Hurricane Ida.
• API 2 coal climbed 8.1% to average $114.4/t.

• EU ETS carbon rose 6.8% to average €60.3/t and UK ETS gained 6.0% to average £52.0/t, this week.
• Prices took direction by rising gas prices across the continent in addition to increased investor buying towards the end of the week.

Wholesale price snapshot