Day-ahead power prices in Europe increased by 13.6% in November, as colder yet calmer weather led to increased electricity demand at the same time as declining wind production.
That’s according to monthly figures from Platts which showed wind power generation last month was down 21% on October. Solar output in November was 58% lower than in the previous month.
Platts Editor Andreas Franke said November was a “game of two halves”: “The first two weeks were bearish to prices, given the strong output of wind power and the above-average power generation. But colder temperatures in the final two weeks of the month prompted higher demand and drove prices upwards to their highest levels since January this year.”
The trend was less pronounced in the UK, where day-ahead power prices rose by 6% in the response to the cold snap. Prices in November averaged £51.18/MWh compared to £48.23/MWh in October.
The increase was in line with the natural gas price, according to Platts, which went up by 5% during month.