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energy-update-11-10-2024

Partner Alert

energy-update-11-10-2024

Please see below an update on the current UK commercial energy market.

Bearish factors (downward pressure on markets):

• UK Onshore wind pipeline doubles growth rate
• Wind speeds above average
• Bulk of Norwegian maintenance has been completed without issue
• Weakening of Asian LNG demand
• Viking Link Interconnector capacity is set to increase during 2025 from 1gwh to 1.4gwh improving the UK Powers import capacity

Bullish factors (upward pressure on markets):

• Tension with Israel and Hezbollah
• Cooler temperatures driving up demand
• Temperatures forecasted to dip further, increasing demand on gas storage
• La Nina Weather early forecast for Q1 2025
• Heightened Hurricane activity in the US
• Last UK coal fired power station closure, reducing supply, however does boost UKs sustainability efforts
• Challenges remain for the UK securing materials for new renewable projects, causing delays and potential higher costs

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