The recent trend of an increasing gas generation share has continued, with gas generation providing nearly 40% of electricity for the Grid and with coal declining to just over 20% share, according to the latest Wholesale Electricity Market Report from Energy UK.
GB Generation Mix: January – June 2014
Coal: 21.4%
Gas power stations: 38.9%
Nuclear: 25.6%
Wind: 3.1%
Hydro: 0.6%
Interconnectors: 6.6% net (including exporters) with 4.9% from France and 3% from Holland
Source: National Grid Via GridWatch
Demand across June decreased relative to May, with liquidity slightly higher. Overall total electricity traded remained above three times demand.
Following the historical trend, there is a greater volume of trade for near term delivery than for the longer term, though there was continued liquidity for the season ahead.
This is to be expected as companies trade to manage risks and shape their portfolio to meet expected consumer demand. Forecasts closer to delivery are more accurate than the longer forecasts which entail greater risks; as a result interest lessens in trades further out.
Meanwhile, since the end of March 2014, the price for electricity to be delivered over winter 2014 has averaged £49.53/MWh.
The price of electricity to be delivered over winter 2013 averaged at £54.32/MWh from April to September 2013, compared to £48.99/MWH the previous winter.
The price of electricity to be delivered over summer 2014 averaged £47.73/MWh, compared to £49.32/MWh for summer 2013.
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