German Renewables Output Helps Cut European Power Prices by 8.4 Pct

German Renewables Output Helps European Power Prices to Fall by 8.4 Pct

Day-ahead electricity prices in continental Europe recorded a fifth consecutive monthly decline in March as surging German solar and wind output helped chase prices lower in neighboring countries, according to data released by Platts, a leading global energy, petrochemicals and metals information provider.

The Platts Continental Power Index (CONTI) fell 8.4% in March to €35.06 per megawatt hour (/MWh) compared to the February level of €38.28/MWh. The index is down more than 39% since peaking at €50.50/MWh in November last year.

“A mid-March surge in German wind output followed seven days of peak solar output, which rose above 20 gigawatts (GW) to a new monthly record of 23 GW on March 20,” said Andreas Franke, Platts managing editor, European power and gas.

“German power prices for March 16 delivery turned negative as wind power output rose above 24-GW combined with stronger solar production,” Franke said. “Further along the curve, German year-ahead power prices fell below €34/MWh in March for the first time in more than nine years as the price CO2 fell drastically and coal prices retreated.”

Outside of Germany’s immediate influence, near-term power prices in the United Kingdom and Italy declined as natural gas prices weakened, aided by falling coal and CO2 prices.

In the natural gas market, U.K. day-ahead prices fell again in March, down 4% after a 9.6% drop in February. Early April price saw further declines, to levels not seen since 2011, as the unusually mild winter gave way to warm early spring weather.

“U.K. natural gas prices are down 35% year-over-year,” said Nathan Richardson, Platts associate editor. “Last year we had a late cold snap that drove gas storage levels down to around 3% of total capacity, while today those levels are already more than 52% ahead of the summer injection season.”

At continental Europe’s most liquid natural gas trading hub, the Dutch TTF, the average price of day-ahead natural gas was €22.76/MWh in March, down 4% on February and down 29% year-over-year.

“The decline has accelerated in recent days,” Richardson said. “TTF prompt delivery gas has dropped below €20/MWh in early April trade, the first time we’ve seen it this low since December 2011. Norwegian gas flows have been healthy and demand for heat and storage have been low.”

Press release, April 16, 2014; Image: alpha ventus

 

Share this article

Follow Offshore Wind

Leave a Reply

Events>

<< Dec 2016 >>
MTWTFSS
28 29 30 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Substructures for UK Offshore Wind

The event will focus on identifying the future situation of the UK to optimise design, improve reliability, and cost-efficiency in existing…

read more >

Maintenance for Offshore Wind

The two day event will bring together key industry stakeholders from the offshore wind industry, associations, consultants, and solution…

read more >

Offshore Accommodation & Access Conference

How is cost reduction pressure impacting offshore oil and gas operator accommodation priorities?
Adapting access solutions for large-scale, far-from-shore offshore wind projects…

read more >

Scottish Renewables Offshore Wind Conference, Exhibition & Dinner 2017

The Scottish Renewables Offshore Wind Conference, Exhibition & Dinner, in association with Offshore Renewable Energy Catapult, will explore key issues facing Scotland’s offshore wind planning, as well as discussing innovations and technology development. The conference will also cover cost reduction and infrastructure, concluding with a debate from industry leaders regarding the future of offshore wind in Scotland and the rest of the UK.

More info

read more >

Jobs>

QHSE Officer, Liverpool based

As QHSE Officer you will be providing support and cover for the QHSE Manager in managing the office and vessels with regard to compliance ...

apply

Business Manager Renewables

We are looking for an experienced Business Manager Renewables to lead the dedicated Operations team in our Bristol office...

apply

Offshore wind jobs at Shell Netherlands BV

Commercial Lead New Energies, Offshore Wind Operations Lead and Wind Turbine Engineer.

apply

Vessels>