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The latest in the Power Market

 One could argue that there is an expectation of lower prices in the power market. This anticipation isn't surprising, especially with the arrival of milder weather signaling decreased electricity demand, particularly in Europe and the Nordic countries. In addition, the significant drop in gas prices adds to these forecasts. Could there be a touch of spring fever among traders, fueling the belief in lower prices? Let's look at a snippet of the latest insights from this week in the power market.

 

On February 28, 2024, Montel News predicted a substantial nearly EUR 11 drop in German day-ahead power prices. This projection was linked to a surge in expected average wind power generation. The baseload for Thursday, as estimated on the EEX exchange, was at EUR 61/MWh, a considerable decrease from the previous day's settlement at EUR 71.82/MWh.

 

However, the price decline would come only after a jump on Wednesday. While the speculated increase in wind power generation is a key indicator, there's also a hint that traders are forecasting reduced wind power output. Montel News reports some trader uncertainty about the reason for the Wednesday price surge, but some suggests it might stabilize within the range of EUR 65-75/MWh. As of Thursday evening, it appears the surge has taken a step back. The current market conditions don't seem to favor further price hikes, and upcoming days may see relatively low demand.

 

Adding to the mix, gas prices have also taken a dip. Projections indicate below-average wind power output, coupled with reduced renewable energy, exerting an influence on electricity prices. The forecast? A breeze of stability, as the market navigates the currents of reduced demand and fluctuating energy sources.

 

 

References

 

https://montelnews.com/news/a3d7ae2c-6d70-4737-96e0-6fc9b54da2d9/german-power-markets-wobble-as-recent-rally-fades

 

https://montelnews.com/news/cbfe82dd-c923-411f-89bc-95ffcaf227a7/german-spot-to-drop-eur-12-with-higher-renewables-output

 

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