Electricity Prices Fall In Europe As German Renewable Energy Output Increases
For the fifth consecutive month, electricity prices in countries neighboring Germany have decreased, recently released Platts data reveals, due in large part to increased solar and wind generation in Germany.
The Platts Continental Power Index (CONT), described as a "demand-weighted base load average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands," dropped steadily in early 2014. The index decreased to €35.06 (or about $48.50) per megawatt hour in March, an 18 percent drop from February. Overall, the index is down by more than 39 percent since peaking at €50.50/MWh in November of last year.
"A mid-March surge in German wind output followed seven days of peak solar output, which rose above 20 gigawatts (GW) to a new monthly record of 23 GW on March 20," Andreas Franke, Platts managing editor of European power and gas said in a news release.
"German power prices for March 16 delivery turned negative as wind power output rose above 24 GW combined with stronger solar production," Franke continued. "Further along the curve, German year-ahead power prices fell below €34/MWh in March for the first time in more than nine years as the price CO2 fell drastically and coal prices retreated."
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Solar panel image via Shutterstock.