Continental power market

European gas for coal switching boundaries in 2017 | 05 Jun, 2017

The switching of gas for coal fired power plants was one of the key themes in European energy markets in 2016.  Switching drove a 20 bcma recovery in ...

Germany’s replacement of baseload capacity with wind | 15 May, 2017

There was much excitement last month when EnBW and Dong bid to deliver 1.4GW of ‘zero subsidy’ offshore wind projects in the 2017 German offshore ...

A wild winter in European power markets | 28 Apr, 2017

The Winter of 2016/17 will be etched in the annals of European power market history. A string of safety related outages highlighted Europe’s depende ...

How higher coal prices support gas hub prices | 03 Apr, 2017

European gas demand fell by approximately 20% over the first five years of this decade.  But 2016 marked a turning point, with demand (including Turk ...

Power sector switching, gas hub prices & volatility | 20 Mar, 2017

In early 2016, the idea of a significant recovery in CCGT load factors at the expense of coal plants was treated with a degree of scepticism. CCGT loa ...

Interconnector value & the cross-channel tug of war | 06 Feb, 2017

It has been an explosive winter in North West European power markets.  Elevated prices, spikes and volatility have suddenly returned, in stark contra ...

UK capacity market surprises again | 09 Jan, 2017

The UK capacity market continues to deliver surprises.  Large scale CCGT plants were expected to provide most of the new capacity in the third T-4 au ...

The impact of rising coal prices | 17 Oct, 2016

2016 has delivered its fair share of commodity market surprises. But none have been more unexpected than the sharp recovery in coal prices.  European ...

Continental generation margins: Gas is back | 05 Sep, 2016

‘Positive baseload generation margins for German CCGTs?  That’s not possible!’ Exclamations such as this have echoed across European power m ...

French Carbon Price Floor | 22 Aug, 2016

As the European carbon price continues to languish below 5 €/t, France has decided to take action. The French government announced in April that it ...

European utility asset sales are ramping up | 20 Jun, 2016

European utilities have taken a battering so far this decade. Most utilities are suffering balance sheet hangovers from a pre financial crisis spate o ...

Has the 2016 commodity price recovery got legs? | 13 Jun, 2016

Crude oil has doubled in price since February.  The rally in oil has coincided with a broader recovery in global commodity prices including coal.  H ...

Gas vs coal switching in Europe: key markets | 30 May, 2016

The displacement of coal plant by gas plant is one of the key current focus issues in the European energy industry.  A sharp decline in coal prices f ...

A revival in contracting of flexible assets | 21 Mar, 2016

Long term contracts are a cornerstone of the energy industry. They play a key role in underpinning the capital expenditure required to develop assets. ...

Gas volatility & investment in deliverability | 20 Jul, 2015

The article below is our last before the summer break.  We will be back with more in late August. There are two key structural trends in play that ...

European gas demand, LNG flow & hub prices | 13 Jul, 2015

Last week we explored the impact of weaker Chinese LNG demand on European hub prices. We set out a scenario that illustrated the impact of European hu ...

Electricity storage investment: path to commercialisation | 29 Jun, 2015

Battery storage technology costs have been declining at an impressive rate over the last 2 to 3 years. Interest in the investment growth potential for ...

Gas vs coal switching in Continental power markets | 18 May, 2015

Five years of coal price weakness has decimated the value of European gas-fired power plants. Spark spreads in Continental power markets have fallen i ...

Gas plant competiveness is increasing | 04 May, 2015

Over the last five years, European coal plants have developed a substantial variable cost advantage over gas plants. This has been driven by relative ...

The tipping point in the gas market | 13 Apr, 2015

The global gas market balance has swung from Asia back towards Europe as oversupply in the LNG market has taken hold. European hubs are providing key ...

The dangers of mixing forecasts and forward curves | 30 Mar, 2015

Forward market liquidity has steadily developed with the evolution of traded gas and power markets in Europe. This has supported traders and asset man ...

Falling fuel prices and thermal plant margins | 26 Mar, 2015

There have been some big moves in commodity prices and currencies so far in 2015.  Sharp declines in oil, gas and coal prices have reduced the fuel c ...

The mountain of new LNG supply | 16 Mar, 2015

Despite current conditions of oversupply, the LNG market is set to embark on a growth spurt over the next five years. The relatively long lead times f ...

Power capacity payments are coming across Europe | 02 Mar, 2015

European power markets are slowly but steadily moving towards implementing capacity remuneration mechanisms for flexible generation.  A consistent pa ...

2014 themes and the way forward into 2015 | 08 Dec, 2014

With Christmas approaching this is our last article of 2014.  We will be back with more in early January.  To finish the year, it has become a bit o ...