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.
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…
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.
Statkraft reports net loss due to currency weakness and lower power prices
Statkraft, a Norwegian state-owned energy company and one of Europe's largest renewable energy producers, reported Thursday a net loss in the third quarter, primarily due to a lower Norwegian currency against euro, as well as lower electricity prices and output. The group reported a net loss for the quarter of July-September of 225 millions Norwegian crowns ($20.41million), down from 4,47 billion Norwegian crowns a year ago. Statkraft recorded a negative exchange rate effect of 2…
Enel reports 6.5% increase in core profit for the 9-mth period on renewable energy growth
Enel, Italy's largest utility, announced on Wednesday that its core profit for the nine months ended September rose by 6.5% on an annual basis, largely due to a strong production of renewable energy, which compensated more than enough for a drop in retail electricity prices in Italy. EBITDA, excluding extraordinary items, came in at 18.72 billion dollars, a figure that was higher than the consensus estimate of 17.3 billion euro compiled by. The ordinary net income for the period was 5,8 billion euros, exceeding an estimate of only 5.7 billion.
Spots fall as wind and nuclear power rise
European prompt electricity prices fell on Tuesday, as the wind power supply is expected to increase from levels which caused a rise in previous trading sessions. "Residual loads are lower, but remain at high levels." In a research report, LSEG analyst Marcus Eriksson said that he expects lower price spikes. He was referring to the volume of supply needed to meet non-renewable source demand. LSEG data show that German baseload power for the day ahead was down by 22.9% to 175 euros ($188.48), but remained its highest level since June 25.
Spot prices rise due to low renewables production and increasing demand
European spot electricity prices rose to multi-month highs Monday. Renewables are expected to continue to be low, while demand is projected to increase. By 0901 GMT, the German baseload contract for Tuesday had reached its highest level since June 25, at 145 Euros ($157.99 per megawatt-hour (MWh). On Friday, during the All Saints Holiday, no equivalent price was traded. LSEG data shows that the equivalent French contract is now at 117.50 Euro/MWh, after having reached a contract high of 117.50 Euros for 11 months.
Signals of bearishness are triggered when price trends diverge.
On Wednesday, the direction of spot electricity prices in Germany and France diverged. However, the dominant trends of increasing renewable output and declining demand created a bearish wholesale environment. In Germany, the demand for electricity is down by 1.7 Gigawatt Hours per Hour (GWh/h), but wind and solar power generation are both up by 7.3 GWh/h & 0.9 GWh/h respectively. This results in a reduction of almost 10 GWh/h in residual load, according to LSEG analyst Naser Hachemi in a forecast.
Spanish renewables warns against threats to investment
Renewables lobby APPA warned that the mismatch between an increasing supply of renewable energy and electricity demand, which is struggling to grow in tandem with low wholesale power prices threatens future investment in the sector. He said that, in terms of pricing, "By 2024 we expect to have about 10% of our hours at zero, or even negative, power prices." April was the lowest month of the entire historical series. The warning comes as Spain is…
Enphase's forecast for fourth-quarter revenue is below expectations due to muted demand
Enphase Energy, a maker of solar inverters, forecast revenue for the fourth quarter below Wall Street's expectations on Tuesday. This was due to weak demand across some markets. Shares fell 9% following the bell. The demand for residential solar in Europe has declined due to lower electricity prices, and increased competition on key markets like the Netherlands and Germany. According to LSEG data, the solar energy company expects its fourth-quarter revenues to range between $360 and $400 million. This compares to analyst expectations of $435.8 millions.
Alcoa and Ignis are close to signing a joint funding agreement for Spain's aluminium plant
Alcoa announced on Wednesday that it is "progressing", towards a strategic agreement of cooperation with the Spanish renewable energy company Ignis, to fund the operations of the U.S. Metal Producer's aluminum plant in northwest Spain. Alcoa announced that the proposed agreement would see Alcoa contribute 75 million Euros ($81 million), and Ignis make an initial 25 million Euro investment, giving Ignis 25% ownership of San Ciprian in Galicia. Alcoa…
EU Energy Ministers Discuss Ukraine Energy Crisis and Russian LNG
Officials said that EU energy ministers met on Tuesday in Luxembourg to discuss the rising Russian LNG imports into the EU, Ukraine's energy shortages before winter and how to equalize energy prices among member states. In June, the EU approved a 14th set of sanctions including a ban of transhipments of Russian Gas as of March of next year. However, it did not impose a complete ban. Belgium and the Netherlands saw a dramatic increase in imports since then.
German spot power rates drop due to stronger wind forecast
German wholesale spot electricity prices fell on Friday morning after rising the day before, as it was anticipated that a higher forecast wind output would dampen demand for power plants. LSEG data revealed that the day-ahead German contract dropped by 23,15 euros to 65,25 euros per Megawatt Hour (MWh) at 0830 GMT. The Sunday price dropped from 13.50 euros/MWh to 51.10 euros, the lowest since April. The German wind power will be much stronger this weekend than it was previously.
Discounts are maintained in France despite prices falling in Germany
German spot electricity prices for Thursday dropped on Wednesday due to expectations of a higher wind energy supply and lower demand. Meanwhile, those in France rose from a lower baseline, but still maintained a discount compared to the neighboring market. LSEG data revealed that the German baseload power contract for day-ahead was down by 29.5% to 57.5 euros ($63.01 per megawatt hour) at 0800 GMT. The French equivalent contract increased by 37.1%, to 49.0 Euros/MWh.
New Industry Minister: Japan will keep nuclear but boost renewables as part of its energy mix
Japan will continue to restart nuclear power plants safely and use as much renewable electricity as possible, said Industry Minister Yojimuto on Wednesday. This indicates that the policy of newly appointed Prime Minister ShigeruIshiba is not likely to change significantly. Ishiba had promised to eliminate nuclear power before he was elected leader of the Liberal Democratic Party. He was sworn into office on Tuesday. He was the sole candidate who opposed nuclear power in Japan. The country imports fossil fuels to produce two-thirds of its electricity.
Prices plummet as wind power surges in
The European wholesale electricity prices fell sharply on the Wednesday following predictions of a large increase in wind power volume in the days ahead. Naser Hashemi of LSEG, an analyst, stated that the anticipated increase in supply sent bearish signs. He listed no factors bullish and added that gas-to power availability in Germany is also increasing. The German baseload electricity for Thursday closed at 60.0 Euros ($67.15 per megawatt-hour (MWh) in the morning GMT, a decrease of 26.6% compared to its previous close.
