Lower wind output drives energy prices higher
Latest Bord Gáis Energy Index rises 5% in July
Wind turbines at Monaincha Wind Farm, Roscrea. Photograph: Brenda Fitzsimons
Lower wind output and outages at key power stations drove wholesale energy prices higher in July with the latest Bord Gáis Energy Index up 5 per cent month on month.
However, the index was still 14 per cent lower than the same period last year. The key monthly driver was electricity prices, which gained 17 per cent on lower wind output, stronger carbon and outages to a number of power stations lifting prices.
Oil, the largest component of the index, was flat on the month as trade tensions and a weakening global growth outlook was offset by rising tensions in the Middle East.
In the first week of July, oil prices hit a low of $62 (€55.63) a barrel despite Opec extending its supply reduction pact to March 2020.
The other components of the index had a strong month with gas prices rising 5 per cent on supply outages, while coal traded 21 per cent higher on stronger demand.
Coal prices opened the month stronger with Chinese buyers in the market trying to book spot cargoes ahead of a possible tightening of import restrictions, the report said.