New records have been set for day-ahead power prices, energy market analyst EnAppSys has highlighted.
For Tuesday (14th September), the day-ahead auction cleared at new records across the board.
Prices at the peak were £1675.30/MWh ($2324.21) for EPEX and £1,750/MWh ($2427.85) for Nordpool. Volume weighted baseload prices also set new records at £461.17/MWh ($639.80) for EPEX and £379.82/MWh ($526.94) for Nordpool.
In addition, there were also records on day-ahead interconnector capacity prices: €1664/MW/h ($1967.86) on IFA for 17:00-18:00 (BST).
Previous records were:
- EPEX Max Price: £1,500 ($2081) on 14th January, 2021
- Nordpool Max Price: £1,499.62 ($2080.42) on 13th January, 2021
- EPEX Baseload Price: £281.11 ($390) on 9th September, 2021
- Nordpool Baseload Price: £285.99 ($396.77) on 9th September, 2021
Phil Hewitt, director at EnAppSys, said: “These high prices are being set by some generators sitting out of the wholesale market to get higher prices in the balancing mechanism. We are also seeing interconnector capacity prices peaking at very high levels; this is a consequence of the new trading arrangements as a result of Brexit.
“Previously, implicit market coupling would have cleared these prices at a much lower level. The more aggressive interconnector capacity prices are feeding through to longer-term capacity prices on the interconnectors.
“Generally, the new trading arrangements are feeding into much higher costs for using the interconnectors compared to before 1st January 2021.
“We are surprised by the extent of these high prices because the market appears to be no more volatile than last week. It does feel that prices are overshooting.
“Looking ahead, Wednesday and Thursday look even more volatile compared to tomorrow, so we suspect that this is not the end of the high prices for this week.”