The U.K.’s National Grid (NYSE:NGG) said Monday it stood down the three coal-fired power plants it had placed on standby but will continue with a plan to ease consumption in the evening when demand is expected to be the strongest.
Preparing for surging demand for heating from freezing temperatures and reduced wind speeds that would lead to less wind-generated power, the U.K. electricity system operator had said late Sunday that the coal plants would be warmed up if needed on Monday when demand is expected to surge.
National Grid (NGG) also said it will maintain its offer to pay households and businesses to reduce demand during peak hours on Monday.
The U.K.’s day-ahead power prices peaked at ~£260/MWh for Monday evening, the highest in more than a month but well below the record high level set in December during a similar cold snap.
Milder weather is expected to return across northwest Europe next week, helping to ease demand; German and French month-ahead power contracts fell Monday as natural gas prices continued to drop.
National Grid (NGG) shares show a “bearish tendency after a strong late 2022 rally,” Mike Zaccardi writes in an analysis published recently on Seeking Alpha.