Volatile power prices are becoming increasingly prevalent, with extreme increases seen throughout September so far.
A contributing factor to the electricity price hike was a fire at the IFA1 French Interconnector. However, interconnector capacity prices are also peaking at particularly high levels as a consequence of Brexit trading arrangements.
Prices on the day-ahead market for the 14th September peaked at £2,500 per MWh, against the £40 per MWh average baseload price during 2019-20. This was followed by another extreme evening peak on the 15th September at a staggering £1,860 per MWh.
The Balancing Mechanism hasn’t been immune from the spikes, as it saw a record high of £4,037.80 per MWh on 9th September.
EnAppSys data shows that in September’s first two weeks, daily average prices have been eight times up on two year ago 2019.
James Belcher, Chief Product Officer at Wattstor, commented:
“Whilst an extreme event contributed to the most recent instances of extreme price volatility, this isn’t going to be unusual in the markets moving forward. We currently work with industrial and commercial businesses to ensure they’re protected against such price hikes, through the use of advanced EMS algorithms for dynamic tariffs and peak shaving, and utilising on-site generation, storage and load shifting.”
“Our product roadmap reflects the evolving marketplace, meaning that Wattstor clients can rest assured their solution is future-proof”.
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