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.
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…
