December Winds Bring Down Power Prices Across Europe

Continental European power prices tumbled again in December as exceptional wind power output combined with mild temperatures and falling demand, according to data released by Platts.

European power prices, according to the Platts Continental Power Index (CONTI), fell 13.29% to EUR 33.08 per megawatt hour (MWh) in December compared to November, itself down 9.4% on October levels. On a year-over-year basis the index was down 14.5% in December.

In Germany, day-ahead prices in December averaged EUR 28.32/MWh, down 12% month over month as German wind output chalked up a new monthly record at 11.5 terawatt hours (TWh), up 30% from December 2014. Wind was Germany’s largest single source of electricity through December, forcing lignite-fired power plants into second place with 11.1 TWh. Germany’s total 2015 wind output is estimated at 86 TWh, up 50% from 2014.

In U.K., average day-ahead prices in December were 8% down month over month and 21% down year over year. Wind supplied 17% of U.K. electricity demand for the month, surpassing the previous record of 14% set in January, 2015. For the year, 11% of the U.K.’s electricity was generated by wind, up from 9.5% in 2014.

France’s strong output gains in wind served to balance sub-par hydro performance towards the end of the year, according to Platts.