We are pleased to present our GB wholesale market summary for February 2021.
Highlights from February include:
- A combination of lower fuel prices and demand caused the monthly average power price in February 2021 to fall to £52.9 /MWh – an £18.3 /MWh (or 26%) decrease from January 2021. However, this is still a year-on-year increase of £23.4 /MWh (or 79%).
- February saw continued periods of tight system margins due to a combination of weather-related factors and limited thermal generator availability. Consequently, these periods saw wholesale prices in excess of £300 /MWh.
- Driven by higher temperatures, the monthly transmission power demand in February fell by 3.8 TWh (or 15%) decrease relative to January, while the share of low carbon generation rose by
12 p.p. to 63% of total generation in February.
- Monthly thermal generation in February decreased by 4.4 TWh relative to January as demand fell, and renewables output increased. Consequently, carbon emissions decreased by 2.1 MtCO2e (or 36%) compared to January.
- Profitability of wind assets in February remained similar to January as the notable decrease in wind capture prices (£14.5 /MWh or 23% relative to January) was mitigated by load factors increasing by 14 p.p. (or to a monthly average of 51%).