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Energy Prices (mid April 2015)

Mid April 2015


Electricity:  Coal and oil prices are expected to recover over the year as production cutbacks tighten supply. Oil prices are reaching the cost of production in many parts of the world, forcing further cutbacks until the price recovers somewhat.

A 70 MW wind farm in the Scottish Highlands has been approved for construction.

The National Grid summer outlook reports the UK generation margins to be at a comfortable level as increased solar photovoltaic capacity will lessen the peak demands.

Gas: The summer maintenance season is set to limit supplies of gas, and colder weather may increase demand in the short term, affecting storage site replenishment across Europe.

The collapse in oil prices that started in 2014 is feeding in to gas contract prices, as there is a six to nine month lag between gas contract and oil wholesale markets. Many buyers are looking to maximise the benefits of lower prices, increasing imports from Russia and Algerian supplies.

Summary position:

Oil $62.86barrel

Coal $57.8/MT

EUA 14 €6.90/TCO2

Gas 47.93p/th Oct 15

Gas 48.33p/th Apr 16

Electricity £45.2/MWh Oct 15


Electricity £45.75/MWh Apr 16