30th August 2017 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
A limited wind and solar outlook helped to lift gas prices on Tuesday, with more expensive CCGT generation expected to make up the shortfall. LNG send-outs are also set to remain low in the short term and Norwegian production continued to experience issues, restricting flows into the UK and the rest of Europe. Weak wind & solar production and restrictions on gas supply in the UK helped power prices move higher yesterday. Meanwhile, the outlook for French nuclear availability remained uncertain as the market awaits the impact of extended safety checks.
Market Open Market Open
Day-Ahead gas has increased this morning with the gains filtering through to the rest of the near-curve. The system opened 7mcm short with demand levels currently 2mcm above the seasonal average. Weak renewable generation has also led to an increase in gas-fired power generation, while planned maintenance will further restrict Norwegian flows at the start of September. Movement on the power curve remains bullish with direction coming from a stronger gas market. Weak renewables have led to an increase in gas-fired power, although cooler temperatures will limit demand.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent has posted another loss this morning and currently trades around $51.5/b; a number of refineries off the Texan Coast are offline due to Hurricane Harvey but the impact on Brent is minimal at present.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased in equal measure – closing at 45.57ppt and £46.54/MWh, respectively.

Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.

Click graph to enlarge

energy price graph - 30-08-2017

If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.