R

educed wind generation has triggered a scramble for power in north and central Europe as prices soar and conventional power is used to fill the gap.

With wind generation in Germany at its lowest level since 2014, the country was producing 700 MW of power from oil-fired units this week – the country’s highest output in four weeks, according to data from Montel Analytics.

  This trend is being replicated across other countries in north and central Europe, which has triggered a spike in prices and forced countries to consider generation from other power sources to meet demand. Day-ahead prices exceeded EUR 800/MWh for two hours yesterday evening, while spot baseload prices for yesterday were at a near two-year high.

  Jean-Paul Harreman, managing director of Montel Analytics, said:

“There is no wind in the centre and north of Europe. There is a battle for that power which is causing the shortage. Oil or pumped storage are likely the marginal units in the merit order. However, at the prices we are seeing, it is more likely an effect of scarcity and bidding strategies than a pure reflection of marginal cost of power production.”

  He said such a scenario could occur again this winter in periods of very low wind generation – periods when demand is likely to be much higher.

“Demand is not at top levels yet. French nuclear is foreseen to provide around 8 GW of additional generation to the market in Europe but if it gets colder, French demand will add additional pressure as it is very temperature-sensitive.”

  Montel Analytics is a highly respected provider of data, consultancy and information services to companies in the energy and power generation markets. These services are used by generators, stakeholders, suppliers and traders to improve their understanding and maximise the value they are able to extract from the market. 

Montel Analytics, which is part of the Montel, is actively growing the business to provide products with enhanced analysis and forecasting capabilities, including a new product relating to ancillary services active in the market. 

The company has a range of pan-European platforms including Montel EnAppSys which covers underlying activity across all markets in ENTSO-E member countries and contains more detailed information available in Ireland, Belgium and the Netherlands. Additional content in other regions is continuously being developed and built into the platform. 

Posted 
Nov 12, 2024
 in 
Renewables
 category
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

More from 

Renewables

View All

Join Our Newsletter and Get the Latest
Posts to Your Inbox

No spam ever. Read our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.