German power for Tuesday more than doubled to €112.75 from €55.01 the day before in the day-ahead auction on Epex Spot SE. The French equivalent climbed to €114.24 from €66.74, Epex data shows.
The swing in prices in just 24 hours underscores the challenge facing grid operators in trying to balance supply and demand when wind generation fluctuates. Nuclear typically runs round the clock as baseload but is increasingly having to run more flexibly to match renewable output.
Parts of northwest Europe are set for lower wind output in the coming days, following extreme weather over the weekend. Storm Bert battered the UK with strong gusts and flooding, while France saw record wind generation on Sunday. Production in Germany is expected to be close to zero on Nov. 29, according to Bloomberg’s model.
While markets are likely to see a seasonal increase in power demand for heating, relatively mild weather and persistent demand destruction will keep consumption across Germany, France and Britain below the five-year average in November, according to BloombergNEF.
