UK Power Slumps Below Zero as Storm Amy Lashes Britain
(Bloomberg) -- UK power prices turned negative for the first time in two years with Storm Amy set to deliver record wind generation through the weekend.
UK day-ahead power prices for delivery on Saturday settled at -£0.42 per megawatt-hour, according to data from Epex Spot SE.
Amber alerts are in place for parts of Scotland and Northern Ireland with gusts in excess of 95 miles per hour expected, according to the UK Met Office. Bloomberg analysis, based on an internal model, predicts wind generation could reach as much as 24 gigawatts from Friday afternoon, with high output continuing into Saturday. The previous record set was 22.52 gigawatts on Dec. 18, 2024, data from the National Energy System Operator shows.
Storms can at times bolster the UK’s energy supplies by increasing renewable generation and reducing the need for gas-fired power. Traders will be closely watching output as heating season begins, since stronger wind generation reduces how much gas needs to be drawn from storage on peak-demand days.
Negative electricity prices — which occur when abundant cheap power outstrips grid demand — have become a regular feature of European markets, often appearing at midday during the solar peak. However a full day of negative prices is rarer, and the UK has not recorded one since 2023.
The extreme weather is also disrupting transport. Avanti West Coast has advised rail passengers not to travel north from England to parts of Scotland after 5 p.m. on Friday, or at all on Saturday. The Met Office warned of further disruptions to flights and road travel due to the heavy rain and strong winds.
Windy weather is also expected across large parts of northwestern France, with yellow wind warnings in place by Meteo France for Saturday stretching as far east as Paris. Electricite de France SA said it would reduce nuclear output at some sites due to “economic reasons” as high wind generation could push down power prices.
Storm Amy, which is being caused low pressure systems in the Atlantic, has been intensified by recent interactions with Hurricanes Umberto and Imelda.
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