{"id":262053,"date":"2023-06-14T12:18:08","date_gmt":"2023-06-14T10:18:08","guid":{"rendered":"https:\/\/climatescience.press\/?p=262053"},"modified":"2023-06-14T12:18:10","modified_gmt":"2023-06-14T10:18:10","slug":"wholesale-power-prices-tumble","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=262053","title":{"rendered":"Wholesale Power Prices\u00a0Tumble"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

By Paul Homewood<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

https:\/\/www.ofgem.gov.uk\/publications\/customers-pay-less-energy-bills-summer<\/a><\/p>\n\n\n\n

The new energy cap set by OFGEM last month, which takes effect from 1st July, is based on an average wholesale electricity price of about \u00a3150\/MWh \u2013 OFGEM refuse to release the actual figure. As this is calculated from Feb to April prices, it is already out of date, so to speak.<\/p>\n\n\n\n

According to Catalyst Energy, both spot and forward prices have fallen sharply since February, down to \u00a368 and \u00a3109\/MWh respectively in May:<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n

https:\/\/www.catalyst-commercial.co.uk\/works\/june-2023-energy-market-brief\/<\/a><\/p>\n\n\n\n

This is confirmed by the CfD calculations for May, which give market prices for offshore wind of \u00a380.16\/MWh and \u00a373.64\/MWh for solar.<\/p>\n\n\n\n

This of course means that we have now returned to the days of heavy subsidies for offshore wind power, which are earning an average strike price of \u00a3179.38\/MWh, meaning that \u00a390.1 million was paid out in subsidies last month.<\/p>\n\n\n\n

We are even subsidising solar power, which earns \u00a3105.98\/MWh in strike prices.<\/p>\n\n\n\n

The drop in power prices is of course the direct result of lower gas prices.<\/p>\n\n\n\n

This trend of lower prices is set to continue through the summer, so we can expect a much lower energy cap in October.<\/p>\n","protected":false},"excerpt":{"rendered":"

The new energy cap set by OFGEM last month, which takes effect from 1st July, is based on an average wholesale electricity price of about \u00a3150\/MWh \u2013 OFGEM refuse to release the actual figure. As this is calculated from Feb to April prices, it is already out of date, so to speak.<\/p>\n","protected":false},"author":121246920,"featured_media":262061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818396,691820065,691818299],"class_list":{"0":"post-262053","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-offshore-wind-power","9":"tag-ofgem","10":"tag-subsidies","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1600%2C1000&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-16aF","jetpack-related-posts":[{"id":286726,"url":"https:\/\/climatescience.press\/?p=286726","url_meta":{"origin":262053,"position":0},"title":"A Long Way From\u00a0Homes","author":"uwe.roland.gross","date":"05\/11\/2023","format":false,"excerpt":"The energy regulator Ofgem\u00a0 has previously been tasked with driving down emissions, but its targets have not been directly linked to the 2050 net zero goal. 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