Storm Austen is set to lash the UK and northwest Europe with heavy rain and wind in the coming days, potentially lowering power prices. The storm is forecast to arrive late Thursday or early Friday, with gusts reaching 60 mph inland and up to 70 mph in coastal areas. The surge in wind generation could provide relief as natural gas prices remain near their highest since the 2022 energy crisis.
Stronger wind output reduces reliance on gas-fired power plants, which often set electricity prices when renewable generation is low. UK wind generation is expected to peak at 20,702 megawatts on Saturday, compared with 13,709 megawatts on Tuesday. German wind output could reach 45,390 megawatts.
The UK Met Office issued yellow alerts for wind, while Ireland warned of heavy rain and flooding. A second storm may follow over the weekend.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing