Power prices jumped after the UK’s grid operator issued a market warning for this afternoon as declining wind output crimps supply just as plunging temperatures boost demand.
The three-hour notice period is set to begin at 4 p.m. London time when there’s an insufficient buffer between predicted supply and demand, the National Energy System Operator said. Intraday power prices rose as high as £1,071.46 ($1,321.32) per megawatt-hour at 4.30 pm London time on Wednesday, according to Epex Spot SE data.
The warning was issued by the grid operator “using operational and engineering judgments” and gives the market more time to adjust than an automatic alert four hours in advance. It’s one of several issued this winter and highlights the risk of building out wind turbines without sufficient back up for days when it’s dark, cold and windless.
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