Prices rise on lower renewables generation

LONDON, June 20 (Reuters) - Wholesale British and Dutch gas prices rose on Tuesday morning due to lower pipeline gas flows from Norway to Britain and lower renewables generation.

The Dutch benchmark front-month contract was up 1.90 euros at 37.30 euros per megawatt hour (MWh) by 0818 GMT, while the August contract was 2.90 euros higher at 38.00 euros/MWh.

In Britain, the day-ahead contract rose by 7.50 pence to 94.00 pence per therm, while the July contract was 4.00 pence higher at 91.00 pence/therm.

The British system was under-supplied due to stronger exports to continental Europe and lower flows from Norway through the Langeled pipeline, traders said.

Renewables generation is also expected to be weaker. Peak wind generation in Britain is forecast at 5.9 gigawatts (GW) on Tuesday and 5.7 GW on Wednesday, out of total metered capacity of around 22 GW, Elexon data showed.

Lower wind output typically increases demand for gas from power plants.

In north-west Europe, lower solar generation is expected to contribute to a 162 gigawatt hour per day (GWh/d) increase on the weekend contract, Refinitiv Eikon data showed.

"The fundamental reason behind this (price) rise could be the drop in wind and solar generation and the need for higher gas and coal generation," analysts at Engie EnergyScan said.

In the European carbon market, the benchmark contract was 1.61 euros higher at 93.76 euros a tonne.