Oct 3, 2025
UK Power Drops Below Zero as Storm Amy Hits Britain.
UK power prices fell below zero for the first time in two years as Storm Amy is forecasted to generate record wind energy over the weekend. Saturday’s day-ahead power prices settled at -£0.42 per megawatt-hour, according to Epex Spot SE data.
Amber warnings are in effect for parts of Scotland and Northern Ireland, with expected gusts over 95 miles per hour, as reported by the UK Met Office. Bloomberg's analysis suggests wind generation could reach up to 24 gigawatts starting Friday afternoon, continuing into Saturday. The previous record was 22.52 gigawatts on December 18, 2024, according to the National Energy System Operator.
Storms can enhance the UK's energy supply by boosting renewable generation and minimizing reliance on gas-fired power. Traders are watching output closely as the heating season starts, as higher wind generation means less gas needs to be drawn from storage during peak demand.
Negative electricity prices, which occur when there's excess low-cost power compared to grid demand, have become common in European markets, mainly during midday solar peaks. However, a full day of negative prices is unusual, and the UK hasn't seen one since 2023.
The severe weather is also affecting transportation. Avanti West Coast has warned rail passengers to avoid traveling north from England to parts of Scotland after 5 p.m. on Friday and throughout Saturday. The Met Office has cautioned of further disruptions to flights and road travel due to heavy rain and strong winds.
Windy conditions are also anticipated in much of northwestern France, with yellow wind warnings from Meteo France extending to Paris. Electricite de France SA plans to reduce nuclear output at some sites for "economic reasons" due to the potential drop in power prices from high wind generation.
Storm Amy, driven by low-pressure systems in the Atlantic, has been intensified by recent interactions with Hurricanes Umberto and Imelda.
Amber warnings are in effect for parts of Scotland and Northern Ireland, with expected gusts over 95 miles per hour, as reported by the UK Met Office. Bloomberg's analysis suggests wind generation could reach up to 24 gigawatts starting Friday afternoon, continuing into Saturday. The previous record was 22.52 gigawatts on December 18, 2024, according to the National Energy System Operator.
Storms can enhance the UK's energy supply by boosting renewable generation and minimizing reliance on gas-fired power. Traders are watching output closely as the heating season starts, as higher wind generation means less gas needs to be drawn from storage during peak demand.
Negative electricity prices, which occur when there's excess low-cost power compared to grid demand, have become common in European markets, mainly during midday solar peaks. However, a full day of negative prices is unusual, and the UK hasn't seen one since 2023.
The severe weather is also affecting transportation. Avanti West Coast has warned rail passengers to avoid traveling north from England to parts of Scotland after 5 p.m. on Friday and throughout Saturday. The Met Office has cautioned of further disruptions to flights and road travel due to heavy rain and strong winds.
Windy conditions are also anticipated in much of northwestern France, with yellow wind warnings from Meteo France extending to Paris. Electricite de France SA plans to reduce nuclear output at some sites for "economic reasons" due to the potential drop in power prices from high wind generation.
Storm Amy, driven by low-pressure systems in the Atlantic, has been intensified by recent interactions with Hurricanes Umberto and Imelda.