Electricity markets have come under increasing pressure this week as temperatures across Great Britain have risen well above seasonal norms, placing the electricity grid under significant strain as increased cooling demand coincides with low wind generation, tightening the supply stack.
Generation availability has been further constrained by reduced gas-fired output, with a number of assets undertaking planned summer maintenance. With temperatures even more extreme across continental Europe, Great Britain has also had to export power to Belgium and the Netherlands during peak periods, adding further pressure to domestic supply margins.
Market stress drives sharp price movements
The tightening supply conditions have translated into significant volatility across GB electricity markets, with extreme pricing observed on Tuesday 23 June and in the Day-Ahead auction for delivery on Wednesday 24 June.
Tuesday 23 June:
On Tuesday 23 June, the System Imbalance Price (SIP) saw substantial variation throughout the day, ranging from 7.9p/kWh in the morning to a peak of 79p/kWh at 20:30 as system margins tightened.
Wednesday 24 June:
For Wednesday 24 June delivery, the EPEX Day-Ahead Auction reached a peak hourly price of 46.8p/kWh between 19:00 and 20:00, reflecting continued pressure on available supply during peak demand periods.
At 21:00 on Tuesday, National Grid issued an Electricity Margin Notice (EMN) covering 19:00–22:00 on Wednesday. This signals tighter-than-normal system conditions, encouraging generators to maximise available output and suppliers to explore demand-side flexibility.
While these conditions are typically more associated with winter periods rather than June, the GB electricity market is experiencing a genuine capacity squeeze. With increasing renewable penetration, changing demand patterns and a growing trend of summer heatwaves across Europe, this could be an early indication of the volatility expected to become more frequent in the years ahead.
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