We are pleased to present our GB wholesale market summary for March 2021.
Highlights from March include:
- A combination of higher carbon prices and demand caused the monthly average power price in March 2021 to rise to £54.1 /MWh, a £1.2 /MWh (2.3%) increase from February 2021. This represents a year-on-year increase of £25.63 /MWh (89.9%) due to a subsequent economic recovery from the initial crash caused by COVID-19.
- Power prices in March saw high levels of volatility with several negative periods and prices exceeding £280 /MWh. This was primarily driven by weather intermittency coupled with higher demand.
- Driven by increased economic activity from relaxation of the national lockdown, the monthly transmission power demand in March increased by 0.8 TWh (3.6%) relative to February, while the share of low carbon generation fell by 7 p.p. to 56.2% of total generation.
- Monthly thermal generation in March increased by 1.5 TWh (19.2%) relative to February as demand increased, and renewables output decreased. Consequently, carbon emissions increased by 0.5 MtCO2e (13.3%) compared to February.
- The profitability of wind assets in March saw a decrease relative to February, caused by an 11 p.p. decrease in wind load factors to a monthly average of 40.5%. This was accompanied by a decrease in wind capture prices (£1.2 /MWh or 2.4% relative to February).