Spot prices dip on more solar power, lower demand
European prompt electricity prices fell on Thursday, as a combination of a growing solar supply and lowered demand was expected to offset a decline in wind supply. As of 1018 GMT, the German baseload electricity for Friday fell 4.4% to 147.75 Euro per Megawatt Hour (MWh). The French baseload for the day ahead was down by 0.9% to 140.75 Euros. LSEG data shows that the German wind output will fall by 1.9 gigawatts to 8.7 GW this Friday. In France, it is predicted to drop 2.8 GW down to 1 GW.
As demand falls and supply increases, prompt prices will fall.
The European spot electricity prices dropped on Wednesday, as the demand for power in Europe declined while wind and nuclear power increased. LSEG data revealed that French consumption would fall as temperatures rise in a country which relies heavily on electric heating during winter. By 1100 GMT, the French baseload for Thursday had fallen 8.3% to 141.30 Euros ($145.62). In Germany, baseload for Friday was down almost 33% at 154.50 Euros. LSEG data indicated that the German wind power output would remain at around 11 gigawatts on both days.
Spots at one-month's highs on German solar, wind downturn
The European prompt electricity prices on Tuesday rose to their highest level for four weeks, mainly due to the expected sharp drop in German green energy output and temperatures below zero. Tomorrow, the German wind power supply will decrease dramatically. "With increasing demand and decreasing output of solar power, this leaves a high residual load that must be covered by conventional resources," said LSEG Analyst Guro Marie Wyller. She added that the availability of coal generation will increase, while gas is expected to decline.
Prices on wind power are increasing.
The European spot electricity prices increased on Tuesday, with the wind generation forecast to drop sharply in the next day while solar production was negligible.LSEG analyst Francisco Gaspar Machado stated that solar production and wind power output were both below normal. He also noted that a decline in German gas availability was supporting the bullish momentum on the market.The price of French baseload electricity for Wednesday rose 42.6%, to 103 euros ($107.20 per megawatt-hour (MWh) by 0835 GMT.The German baseload for the day ahead was not traded…
Constellation wins $1 billion contract to supply nuclear energy to the US government
Constellation Energy announced on Thursday that it had been awarded contracts worth a record-breaking $1 billion to supply nuclear energy to the U.S. Government. As part of an agreement with the U.S. General Services Administration, Constellation, America's largest nuclear power plant operator, will provide electricity to over 13 federal agencies. The GSA estimated the contracts will begin on April 25 and include over 10 million Megawatt-hours of electricity over a period of 10 years, which is equivalent to powering over 1 million homes each year.
Pennsylvania Governor complains about PJM power market rules to regulator
Pennsylvania Governor Josh Shapiro has filed a complaint against PJM Interconnection with a federal energy regulatory agency on Monday. He argues that the U.S.'s largest power grid operator, PJM Interconnection, must change their market rules to avoid escalating electricity prices. PJM Interconnection has been under increased scrutiny since July when it announced that its annual capacity auction will result in record-high payment to power plants within its system.
Spot prices fall on forecast of strong wind supply
The European spot electricity prices fell on Wednesday as the wind supply is expected to increase throughout the region and demand to fall in France due to warmer temperatures. LSEG data show that the German baseload day-ahead power dropped 38.2% at 0923 GMT to 57.75 Euros per Megawatt Hour (MWh). LSEG data shows that the equivalent French contract is down by 40.5%, at 59.5 Euro/MWh. According to LSEG analyst Francisco Gaspar Machado, the outlook for Wednesday is negative due to an increased supply of wind power in Germany.
Nordic countries debate energy policy after spikes in power prices
On Thursday, the hourly electricity prices in certain parts of Scandinavia reached record levels. They were tenfold higher in some cases than average, due to cold weather and lower wind power production. This prompted politicians to suggest a change in energy policy. In Denmark, the price per megawatt-hour (MWh) for an hour starting at 1600 GMT has risen to 936 Euros. South-western Norway and Southern Sweden have seen prices above 700 Euros/MWh. The German price has also risen due to the unusually low amount of wind and solar energy generation.
Spot prices are affected by higher wind forecasts
European prompt electricity prices fell on Friday, as wind power supplies are expected to increase in Germany while demand is forecast to decline. LSEG data revealed that the German baseload electricity contract for Friday had fallen 39.1% to 195 euros ($204.96 per megawatt-hour (MWh). The French equivalent contract fell 2.3% to 17 euros/MWh. LSEG data indicated that the German wind power production was expected to increase by 3.1 gigawatts to 5.7 GW, while French output is projected to drop 370 megawatts to 560 MW.
Greece announces new round of subsidies on household electricity bills
Greece announced on Friday a new round in subsidizing electricity bills to assist households struggling with the rising costs of electricity in December. Greece spent almost 10 billion euros ($10.58billion) on power bill subsidies to households and businesses between 2021 and 23. This is the largest amount of subsidies that an EU country had ever paid as a percentage of its GDP. In November, wholesale power prices in Europe reached their highest level in more than a year.
French spot prices rise due to increased demand and lower wind supply
The French prompt electricity prices increased on Monday due to the expectation of increasing demand and reduced wind output. LSEG data shows that the price of French baseload electricity for Tuesday at 0926 GMT was 132.25 Euros ($139.09 per megawatt-hour (MWh), up 29.7% compared to Friday's price for Monday's delivery. German day-ahead electricity was 139 euros/MWh. LSEG data revealed that the Monday contract had not been traded on Friday. Riccardo Paraviero, LSEG analyst, said: "The signal (on Tuesday) is bullish.
German Minister proposes subsidies for stabilizing electricity network fees
German Economy Minister Robert Habeck proposed Tuesday subsidies to stabilize fluctuations of electricity network fees. Consumers and businesses are bearing the brunt due to high energy costs, which have hindered investment and production. Habeck, speaking at a Berlin industry conference, said that the subsidies would be "a short-term measure" for 2025. They could be technically implemented by a 2024 supplementary budget. In Germany, the cost of using the electricity network accounts for around 20%.
On Monday, the forecast calls for a lower wind demand and an increase in wind supply.
On Friday, European prompt power prices were not traded for Monday due to the expectation of a higher wind power supply in the region as well as lower demand. At 1050 GMT, the German and French baseload electricity contracts for Monday had not been traded. LSEG data indicated that the German wind output is expected to increase by 16.4 gigawatts on Monday, to 28.7 GW. The French wind output should gain 4.6 GW up to 12.8 GW. Naser Hashemi, LSEG analyst, said that the residual load in Germany was lower on Friday due to higher wind and reduced consumption.
Fuels and carbon gain from a curve that shows a fall in spot prices
The European spot electricity prices fell on Friday on the back of forecasts that higher wind generation will be occurring and lower demand on Germany's main market. Forward contracts, however, rose in line with gains on fuel and carbon markets. The French baseload for the day ahead fell by 3.4%, to 114 Euros ($120.01 per megawatt-hour (MWh). At 0840 GMT the equivalent German contract had settled at 121 Euros/MWh. On Friday, the German wind power production is expected to increase by 5.1 gigawatts to 30.2 GW.
Grid operator PJM faces a new complaint regarding power supply
Consumer advocacy group filed a complaint with PJM Interconnection. They claim that the U.S.'s largest grid operator unfairly awards record-high payments to power plants, driving up electricity prices for households and businesses. The Federal Energy Regulatory Commission received a complaint on Monday, the second in recent times regarding PJM Interconnection’s capacity market auction for 2025-2026. This auction set prices that were over 800% higher than those of the previous year.
German Monday contracts are affected by the increase in wind power supply
German spot electricity prices for Monday dropped on Friday, as the wind generation in that region is expected to be higher than usual next week. However, power demand will also rise. LSEG data shows that the German contract price was 90 euros per Megawatt-hour (MWh), down 26.8% compared to the price paid on Friday. LSEG data revealed that the equivalent French contract was not traded. Guro Marie Wyller, LSEG's analyst, said that Monday is likely…
Germany mandates open market sales of new wind and solar plants
The German cabinet approved Wednesday plans that will require the majority of operators of new solar and wind power plants to independently sell their electricity on the open markets. This is to improve the integration renewables in the country's system. According to a new energy policy, even small facilities of 25 kilowatts must self-market instead of selling their power to the grid with guaranteed prices. Germany wants to reach 80% of its current electricity demand through renewable sources by 2030.
German chemical lobby VCI reduces its 2024 forecast amid political turmoil
The German chemicals industry association VCI lowered their annual forecasts on Wednesday, citing the economic stagnation in Germany and political turmoil. The association, which represents 1,900 companies within Germany's third largest industrial sector, is expecting production volumes, including pharmaceuticals, to increase by just 2% in this year. This is a significant drop from the 3,5% growth it predicted for nearly six months. It is expecting industrial sales to fall by 2% compared to the 1.5% increase previously predicted.
German spot prices fall on the back of a wind forecast, while French prices increase on demand
On Thursday, the European spot electricity prices were mixed. Germany's fell on expectations of increased wind power generation, while French prices rose due to projected higher consumption. The LSEG report also identified the increased solar power and brown coal generation as factors affecting market. German baseload power fell 35.4% to 114.8 euros (123.50 dollars) per megawatt-hour (MWh) by 1035 GMT. This is down from the five-month-highs reached this week. The French equivalent contract increased by 4.3% to 109 euros/MWh.
Enphase Energy will lay off up to 17% of its workforce and take charges up to $20 million
Enphase Energy announced on Friday that it will reduce its global workforce of about 17%. This will affect about 500 employees and subcontractors. The solar inverter manufacturer is reducing operations due to a slowdown in residential solar demand. The company will concentrate contract manufacturing at four locations: two in the US and one each in India and China. It added that the company would cease its contract manufacturing in Guadalajara. Enphase shares have dropped by close to half so far this season…
