UK baseload and peakload prompt power prices fell Wednesday, extending previous days' losses despite strengthening spot gas prices as strong wind power generation kept the system comfortably supplied.
On the OTC market, the base day-ahead power for Thursday delivery was last heard trading before the Platts 11 am close at GBP41.45/MWh, down 3%, or GBP1.30.
The peak contract for Thursday delivery shed nearly GBP2 to change hands at GBP43.50/MWh.
The UK base day-ahead auction outturned above the OTC price at GBP41.64/MWh on Wednesday on the N2EX and APX exchanges.
Despite gains on the NBP gas market, UK prompt power prices remained depressed amid falling demand and forecasts for further increases in peak wind power generation this week, which would likely raise surplus margins.
According to National Grid, Thursday's peak demand was expected to decline to 43.8 GW, below Wednesday's demand forecast of 44.4 GW.
At the same time, wind power output was estimated to hit 3.3 GW Thursday, stable to slightly higher than peak wind forecast of 3.1 GW for Wednesday, the grid data showed.
By midday Wednesday, electricity generated from wind stood at nearly 3 GW, accounting for 7.4% of the UK's energy mix, while solar and hydro represented less than 1% of the generation mix at 290 MW and 370 MW, respectively.
On the NBP gas hub, the same-day contract was up at 48.05 pence/therm, while the November contract was 0.35 p/th higher at 54.85 p/th at 11 am.
Gas-fired power generation, despite the strong gas prices, accounted for 34% of the UK's total supply, contributing 13.8 GW to the grid.
However, coal-fired power plants, which generated less power than CCGTs last month, contributed the same amount of electricity midday Wednesday at 13.8 GW, National Grid data showed.
