price volatility

GasTerra storage auctions & flexibility value implications | 10 Feb, 2014

Twice a year GasTerra auctions Dutch storage capacity.  The price the market is willing to pay for this capacity provides a useful insight into the v ...

UK Capacity Market to become a reality in 2014 | 27 Jan, 2014

2014 will mark the end of the energy only power market that has served the UK over the past two decades.  By the end of this year the energy market w ...

Price spikes and the value of gas flexibility | 06 Jan, 2014

European gas hub price volatility has been in steady decline over the last 3 years.  We explored the factors behind subdued volatility in an article ...

What drives contract counterparties back to the negotiating table? | 23 Sep, 2013

This is the first in a series of articles on commercial considerations in the negotiation of long term energy contracts, written by Nick Perry. Th ...

Headaches from FX and interest rate exposures | 15 Apr, 2013

Since the heightened panic across the Eurozone last summer, central banks have flooded credit markets with cheap money.  This has temporarily calmed ...

European storage response to the NBP price spike | 08 Apr, 2013

UK gas prices remain elevated and subject to further volatility as cold weather continues into the spring. One of the key factors in focus is gas stor ...

Is the UK gas market facing a supply crisis? | 25 Mar, 2013

There has been a resurgence in UK gas market price volatility this month caused by unseasonably cold weather and a number of supply disruptions.  Pro ...

GasTerra virtual storage: a valuation case study | 04 Mar, 2013

The GasTerra TTF virtual storage auction held in mid February failed to clear above the reserve price level.  GasTerra’s capacity auctions provide ...

The problem that is gas volatility | 25 Feb, 2013

Despite gas prices trending higher at European hubs, price volatility has fallen to its lowest level since gas market liberalisation.  We have writte ...

LNG spot volatility and European price formation | 04 Feb, 2013

A rapid expansion in Australian, African and US liquefaction capacity may drive global gas price convergence later this decade.  But the global gas m ...

Is the UK gas market being rigged? | 19 Nov, 2012

Allegations of gas market manipulation last week have sparked a political frenzy in the UK. These closely follow allegations two weeks ago that Barcla ...

Getting to grips with intermittency | 05 Nov, 2012

Much has been written about the challenges of managing load intermittency arising from the growth of renewable capacity in European power markets.  W ...

The death of gas volatility in Europe? | 03 Sep, 2012

A benign volatility environment The level of realised spot price volatility at European gas hubs has fallen to historical lows over the last three ye ...

Flexibility value: seasonal spread drivers | 12 Mar, 2012

Following on from the spread theme of last week, we examine recent developments in the seasonal gas price spread.  This is a key driver of the value ...

Capacity Market impact on plant owners and investors | 20 Feb, 2012

For better or for worse it is clear that a Capacity Market is now a reality for generation owners and investors in the UK and one which is likely to s ...

UK Capacity Market impact on prices and price volatility | 06 Feb, 2012

We are sceptical of the UK government’s motivations in introducing a Capacity Market (CM), as we set out in a recent article.  The CM appears to be ...

Timera Energy’s 2011 review | 12 Dec, 2011

A year in review The season of long lunches, last minute shopping and visits from the in-laws is upon us again.  As a result this will be our last p ...

A renewed credit crunch and European energy investment | 21 Nov, 2011

The onset of the financial crisis in 2008 has seen a paradigm shift in the investment behaviour of European energy companies.  An urgency to build pa ...

Transportation capacity valuation and hedging | 24 Oct, 2011

We explored in a recent article the crucial role transportation capacity and interconnectors play in European gas and power markets.  The ability to ...

German nuclear closures: politics versus reality | 26 Jun, 2011

Nuclear politics It is only 25 years since highly radioactive caesium isotopes from the Chernobyl explosion fell over Germany. So it is understandabl ...

The value of existing UK coal plant ? | 13 Jun, 2011

The value of coal plant in the UK has suffered over the last 3 years Negative sentiment towards coal fired generation capacity in the UK over the las ...

Volatility surface for the UK gas market | 26 May, 2011

There is a well established Over-The-Counter (OTC) market for UK NBP gas monthly put and call options. From traded prices in this market it is possibl ...