Natural Gas Prices Also Declined on Plentiful Supply, Flat Demand
LONDON, Dec. 11, 2015 /PRNewswire/ -- Continental European power prices tumbled in November as exceptional wind power output combined with mild temperatures and unexceptional demand, according to a data analysis released by Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.
European power prices, according to the Platts Continental Power Index (CONTI)*, fell 9.4% per megawatt hour (MWh) in November compared to October. On a year-over-year basis, the index was down 1.6%.
Platts' regional analysis of European power and gas markets showed the following:
- Germany: day-ahead prices in November averaged €32.12/MWh, down 17% month over month as Germany's vast fleet of wind farms averaged 14.7 GW of operational capacity each hour, a new record and up 165% on this time last year. Increased exports, plant optimization and coal transport problems due to low river levels offset some downward pressure on prices, but into December day-ahead prices had fallen below €30/MWh as bearish fundamentals intensified.
- France: day-ahead prices fell 4% month over month to €42.39/MWh in November, but were up 10% year over year as a dip in hydro, coal and nuclear output was offset by more expensive natural gas-fired production. Gas-fired generation was up more than 300% year over year in November to 3.42 terawatt hours (TWh), while nuclear output was down 1.63% year-on-year to 35.55 TWh.
- U.K. power: average day-ahead prices in November were 6% down month over month and 22% down year over year. Wind production of 2.6 TWh in November was just shy of December 2014's record. Mild temperatures and cheaper gas prices served to undermine prompt power prices further.
- U.K. gas: National Balancing Point (NBP) day-ahead gas prices shrugged off seasonal trends to drop 9.9% month over month, and were down a hefty 33.9% compared to November 2014 levels. Increases in indigenous production from the U.K. Continental Shelf, strong imports from Norway and higher volumes of Qatari LNG arriving in to U.K. terminals all weighed on the NBP spot price.
Platts Powervision data shows that over the past two years Germany had brought online 7 GW of coal-fired generating capacity and over 10 GW of wind capacity, with a boom in offshore wind installations this year ensuring higher load factors per MW installed.
With domestic demand stable, growing overcapacity has seen Germany increase its electricity exports to neighboring markets, with the country's net export balance of 36 TWh for the January-September period already above last year's total net export balance.
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Platts Continental Europe and U.K. Day-Ahead Monthly Averages
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Nov-15
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Oct-15
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Nov-14
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CONTI (€/MWh)
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38.15
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42.10
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38.78
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TTF (€/MWh)
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17.05
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18.21
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22.51
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U.K. Power (£/MWh)
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37.62
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39.88
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46.90
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U.K. Gas (pence/therm)
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35.56
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39.46
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53.79
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Source: Platts
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NOTE: All figures are monthly averages of daily day-ahead contract prices as assessed by Platts.
For more information on electric power or the methodology used by Platts in its power assessments, visit the Platts website www.platts.com.
* The Platts CONTI is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands. The Platts U.K. assessments reflect day-ahead contracts assessed for firm delivery of power on the high voltage network of England, Wales and Scotland, and at the National Balancing Point (NBP) for gas. The Platts assessments reflect prices as determined between buyer and seller in the open physical markets.
CONTACT
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