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Power market blog 4th-17th of march

Over the past fortnight, the European electricity market has witnessed notable fluctuations and trends, offering insights into the dynamics shaping energy prices across the continent. According to Nordpool, the system price of electricity has experienced a slight decline, dropping by 1 euro per megawatt-hour from 68 euros to 67 euros. While this may seem marginal, it reflects the ongoing adjustments within the market. In Spain, the past two weeks have marked a significant milestone with the lowest spot prices observed in a decade. Montel attributes this phenomenon primarily to robust wind generation coupled with stable, mild temperatures. The Mibel market has consequently witnessed a substantial 30% downturn, indicative of the pronounced impact of favorable weather conditions on electricity pricing. Conversely, Italy continues to grapple with persistently high electricity prices. Corrado Micozzi, CEO of forecasting company Mycsolutions, underscores that this trend is driven by a pricin...
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Nordic and European Power Market Review: February, Weeks 4

In the fourth week of February (February 19th to 25th), the main European electricity market experienced a downward trend, despite showing signs of slight recovery towards the end of the week.  Specifically, average prices were lower than those of the  preceding  weeks in February, according to Aleasoft Energy Forecasting.  Notably, the MIBEL market had the most substantial drop of 54% , with prices plummeting by 54%. In contrast, the IPEX of Italy and the N2EX of the United Kingdom showed small declines of 7.6% and 8.2 each. The EPEX SPOT Market in Belgium and France both saw declines of 13%, while the Nordpool market, encompassing Nordic countries, recorded a 17% of drop.  These declines in the power market during the 4th week of February can be attributed to several factors. Firstly, there was a decrease in the average price of gas and the CO2 emission rights. Secondly, there was an increase in wind energy production. Moreover, for the German and Iberian mark...
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German Renewable Power and Volatility

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According to Montel , the German power market is experiencing increased volatility, after "solar capacity rose roughly 14GW in 2023, 85% more than year before" [ Montel ]. In this blog, we will describe the factors contributing to this volatility and how it will affect the market. The shift to renewable energy is crucial in the battle against global warming. However, the unpredictability of wind and solar power production,  can create a mismatch between energy demand and supply, leading to increased price volatility. This is particularly during periods of high demand, such as in low temperatures, at same time as both wind and sunlight are less available. Conversely, during low-demand periods on sunny and windy days, prices decrease, leading to more incidents of negative prices. A  study  by Tuomas Rintamäki from 2017 concluded that "wind power increases the daily price volatility in Germany". The figure shows the rapidly growth of Wind and Solar power in Germany...
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