Mini Energy Report 17 May 23
- Gas and Electricity Wholesale prices are lower.
- EU Gas Storage levels are a healthy 64% full.
- LNG deliveries continue to arrive in Europe.
Since our last Energy Report, Gas and Electricity Year Ahead Wholesale prices are lower. Milder temperatures and the opportunity to increase EU Gas Storage levels to 64% full compared to last week’s 62%,is one reason why Gas and Electricity prices have continued their downward trend. The target of 90% by November seems to be achievable, assuming we are able to divert Gas into Storage during the warmer months. We are still receiving good supplies of LNG which are replacing some of the reduced Russian Gas flows. Energy markets are very conscious that LNG may begin to head towards Asia as the Chinese economy grows beyond expectations.
Wind’s contribution to generation over the last week fell to just 16% compared to 21% in April, requiring the use of more Gas at 39% and an increase of Electricity imports from the continent, which accounted for a high 18% of supplies. As we saw in 2022, if France has more issues with their Nuclear reactors, then imports will fall and we will
have to rely more heavily on expensive forms of domestic generation. The Met Office forecast for the remainder of the month suggests temperatures will be at seasonal norm with the possibility slightly stronger winds.
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