UK prompt power contracts rose on Friday despite bearish price signals from falling gas prices, as low wind power generation over the weekend and early next week is likely to tighten supply.
On the OTC market, the baseload power price for Monday delivery rose GBP1.10 to GBP44.50/MWh before the Platts 11:00 am London time close on Friday, while the Monday peakload power price moved up GBP1.75 to GBP48.75/MWh.
The UK's National Grid expects peak power demand on Monday to increase to 39 GW, up from Friday's maximum power demand forecast of 38.7 GW.
Peak wind power output would rise above 1 GW on Saturday, up from a peak wind forecast of 569 MW for Friday. However, sources said that peak wind power generation in the UK would drop and stay below 500 MW early next week.
Surplus margins are set to tighten on Monday to 9.8 GW and further narrow to 9.1 GW and 9.5 GW on Tuesday and Wednesday, down from around 11.3 GW on Friday, National Grid data showed.
Meanwhile on the supply side at midday Friday, gas-fired power plants produced 41.3% of the UK's total power supply at 15.8 GW, while wind remained low at 290 MW, down nearly half of levels seen at midday Thursday.
Solar and hydro power output stood at 512 MW and 415 MW at midday Friday, accounting for 1.3% and 1.1% of the total energy mix.
Coal-fired power plants generated 10.9 MW of electricity on Friday, representing 28.7% of the total generation mix at midday, the grid data showed.
Temperatures are expected to hover near seasonal average in many parts of the UK on Sunday and Monday, with London and Manchester at 21/13 degrees Celsius and 18/10 C on Monday, according to CustomWeather forecasts.
