Coal units run by Drax Group Plc, Uniper SE and Electricite de France SA all started up this morning, bringing total coal-fired output to 1,493 megawatts, or about 3% of demand. With natural gas costs still high and wind waning, peak power prices for Friday settled above 1,000 pounds a megawatt-hour in an auction Thursday, potentially boosting coal-fed production further.
“The U.K. may further rely on coal output over the near term amidst rising gas prices, making coal economically viable over the short term,” RBC Europe said in an emailed note.
RWE AG’s gas-fired plant in Pembroke, Wales, suffered an unplanned outage, reducing that fuel’s share of demand to 49% on Friday morning, while wind fell to 20%. Wind generation is forecast to rise near record levels next week.