Next-Generation Geothermal Is Challenging Gas Power in Europe
February 20, 2026
UK Energy Market Summary to Friday 20th February 2026
Closing prices 20.02.2026
British forward wholesale gas prices rebounded on Wednesday amid renewed concerns over a potential US conflict with Iran that could disrupt global supply. As a result, the Sum 2026 contract closed at 2.5 p/kWh, or 5%. Meanwhile, near-term contracts eased on the back of warmer weather conditions, with the NBP spot price declining by 2.4% to 2.4 p/kWh.
British spot gas rallied sharply, rising more than 11% to 2.7 p/kWh, after outages at the Ormen Lange gas field curtailed Norwegian deliveries to Europe by nearly 11.8 mcm/day. The disruption is expected to last until mid-next week. Further along the curve, the Summer 2026 delivery contract climbed by 8% to 2.7 p/kWh as the market priced in elevated supply risks amid persistent Middle Eastern tensions. Furthermore, low EU gas inventories, at just 32.5% of capacity versus 43.3% a year ago, added further price sensitivity.
At time of writing, European gas storage levels are 31% full, with the UK 27% full. European gas storage levels are trending at the low of the 5-year average. Over the past week gas has accounted for 27% of the UK generation mix with wind accounting for 45%, solar 3% and nuclear accounting for 11%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices climbed on Wednesday amid ongoing concerns about potential supply disruptions in Iran, following reports of possible US threats in the region. Brent crude rose by 4.4% to settle at $70.35 per barrel.
After multiple failed attempts to push higher, European carbon prices drifted slightly lower as sellers defended elevated levels.