Power plants move down merit order.
With oil prices rising and supply a little tighter in 2004, it is no surprise that this week, PowerGen annouced that they intend to convert Isle of Grain from oil to gas, and nPower intend to build a 2000MW Gas CCGT in Pembroke on the old oil power plant site. In the old Pool days these plants were high up the merit order and rarely ran, but with their strategic locations in terms of transmission they were not up for sale in the subsequent government divestments or when power prices dropped in 2002/03. This long term strategic play appears to have swung full circle, and that in two years time when these facilities are up and running, they will be the jewels in the power companies generation portfolios.
11 January 2008
Coal although massively in demand has risen so much in price that players have switched to gas, this in turn has risen and perhaps as all commodities prices start to fall on economics some will start to look at coal more seriously again. read more...
18 May 2005
The picnic is still going on and the bears remain in the woods. read more...
25 January 2005
Winter 05 continues its bull run, hitting a two month high of £37.10. read more...
Natural Gas the one to watch
The power curve ended the week down feeling the pressure from the fuel curves as well as healthy supply situation. Looking forward, the gas market is the one to watch as it continues to dominant the fuel mix accounting for 50% of generating plant. read more...
08 March 2010
The power curve ended the week down feeling the pressure from the fuel curves as well as healthy supply situation. Looking forward, the gas market is the one to watch as it continues to dominant the fuel mix accounting for 50% of generating plant. read more...
Gas Imports Keep the System Balanced
Two GBAs in one week, use of Interruptible Supply Contracts and record temperatures but the system remains balanced and gas prices even drop during trading. read more...
08 January 2010
Two GBAs in one week, use of Interruptible Supply Contracts and record temperatures but the system remains balanced and gas prices even drop during trading. read more...
Gas Balancing Alert Issued
National Grid issues a rarely used Gas Balancing Alert following both supply and demand pressures. With severe weather warnings in place and freezing temperatures set to continue, will this be the last of the GBAs? read more...
05 January 2010
National Grid issues a rarely used Gas Balancing Alert following both supply and demand pressures. With severe weather warnings in place and freezing temperatures set to continue, will this be the last of the GBAs? read more...
Out with the Old, In with the New
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
31 December 2009
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
Where's the certainty?
There was a time when you could quite comfortably forecast the running order of generation plant in the UK - but 2009 has seen a dramatic turn in the stack! read more...
23 December 2009
There was a time when you could quite comfortably forecast the running order of generation plant in the UK - but 2009 has seen a dramatic turn in the stack! read more...
We have reached peak oil .... again?
Another article in the press this week suggests that we face peak oil imminently (we say another article because various academics have been reporting this fact periodically over the past few years). In any event, whether peak oil (the point at which growth in supply is less than the growth in demand) occurred this week, last month or last year, the point is we have, or are about to, reach a turning point and something ought to be done. read more...
31 July 2009
Another article in the press this week suggests that we face peak oil imminently (we say another article because various academics have been reporting this fact periodically over the past few years). In any event, whether peak oil (the point at which growth in supply is less than the growth in demand) occurred this week, last month or last year, the point is we have, or are about to, reach a turning point and something ought to be done. read more...
What type of recession will it be.
Economists are trying hard to work out if this recession will be a V, W or square root type of recession. read more...
13 May 2009
Economists are trying hard to work out if this recession will be a V, W or square root type of recession. read more...
Oil eases off
Oil bulls retreated as the markets digested the US oil stock levels. read more...
15 April 2009
Oil bulls retreated as the markets digested the US oil stock levels. read more...
Recent oil price rises will not last
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. read more...
25 March 2009
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. read more...
Oil increases turn gas more bullish
The oil market rose marginally to an change in US stock levels. read more...
25 February 2009
The oil market rose marginally to an change in US stock levels. read more...
Out with the Old, In with the New
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
31 December 2009
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
Unseasonal Temperatures help to melt prices
Middle of November but no sign of wintery temperatures. The effect was to soften the prompt power market, which also felt the pressure from weak commodity curves. The downward trend fed through the power curve. read more...
16 November 2009
Middle of November but no sign of wintery temperatures. The effect was to soften the prompt power market, which also felt the pressure from weak commodity curves. The downward trend fed through the power curve. read more...
Market forgets basic principles and panics!
It could be said that the market over reacted today in the prompt market with a price rally on the back of a £142 half hourly cash out price. read more...
02 October 2009
It could be said that the market over reacted today in the prompt market with a price rally on the back of a £142 half hourly cash out price. read more...
What's Happening in the Back-End?
The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist. read more...
19 June 2009
The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist. read more...
Budget day sees the UK set lead on carbon
The chancellor stated that he wanted the UK to cut emissions by 34% by 2020. read more...
22 April 2009
The chancellor stated that he wanted the UK to cut emissions by 34% by 2020. read more...
Power Prices Ride the Crest of the Fuel Wave
A bullish fuel market fed through into the UK Power Market today with gains of over £2/MWh seen on most of the seasonal curve contracts. read more...
26 April 2010
A bullish fuel market fed through into the UK Power Market today with gains of over £2/MWh seen on most of the seasonal curve contracts. read more...
What type of recession will it be.
Economists are trying hard to work out if this recession will be a V, W or square root type of recession. read more...
13 May 2009
Economists are trying hard to work out if this recession will be a V, W or square root type of recession. read more...
Oil eases off
Oil bulls retreated as the markets digested the US oil stock levels. read more...
15 April 2009
Oil bulls retreated as the markets digested the US oil stock levels. read more...
Market ticks up
The power market ticked up marginally today on the back of retail clients starting to hedge exposures out of April 09. read more...
04 March 2009
The power market ticked up marginally today on the back of retail clients starting to hedge exposures out of April 09. read more...
Oil increases turn gas more bullish
The oil market rose marginally to an change in US stock levels. read more...
25 February 2009
The oil market rose marginally to an change in US stock levels. read more...
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