Power prices in Europe had declined last month owing to Germany’s massive wind power production, combined with mild weather conditions and stable energy demands, reveals Platts, an industry research information provider.
According to Platts Continental Power Index (CONTI), power prices across the continent had experienced a downfall of 9.4% per megawatt hour (MWh) in November compared to October prices.
The index was down 1.6% on a year-over-year basis, the firm said.
CONTI is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands.
Regional analysis conducted by the company indicated that Germany had turned more than 10GW of wind capacity operational over the past ten years.
The country has also commissioned 7GW of coal-fired generating capacity over the period.
Offshore wind installations were high this year in Germany, which have led to higher load factors per MW installed.
Stable domestic demands for power in the country had, however, prompted it to export the excess energy outputs across neighbouring markets.
Plentiful supply has raised Germany’s net export balance to 36 TWh for the January-September period, which is already a considerable amount above its total net export balance for last year, Platts said.
Austria also experiences similar market conditions with higher wind power output and weak consumption, reports Reuters.
An energy market trader was quoted by the news agency as saying: "It is a downward spiral, with no foreseeable cold patch coming up, there is little support for the prompt positions while weakness in the fuels drags down the curve even further."