U.K. Power Price Goes From Nothing to 3-Year High in 24 Hours
- Low wind generation sent prices for Tuesday to 3-year high
- Higher wind output on Sunday sent balancing costs negative
National Grid has contracted 10 power stations to use as backup in emergency situations that it will probably need to use.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Volatility is hitting the U.K. power market, with prices swinging from below zero to the highest in more than three years within 24 hours.
Tuesday’s lowest wind generation in more than two weeks and warm weather in the southeast pushed Monday’s auction price to the highest since March 2013. Just 24 hours earlier, system prices, or the cost of balancing the market, turned negative amid relatively high amounts of wind and low weekend demand.