Warm westerlies drive down prompts

摘要

Continental prompt power prices remained largely bearish mid-October with warm, westerly winds boosting renewables and suppressing heat-related demand. Frontmonth contracts for November delivery in both Germany and France also continued their downward trend with no significant cold spell in the long-range weather outlook. German November base shed more than €2 over the past fortnight to close Oct 23 at €34.75/MWh. French November base dropped below €47/MWh, down more than €5 over the past two weeks after starting October above €54/MWh. French front-month contracts have dropped below Spanish November baseload, which rose above €54/MWh October 22 amid a low wind power outlook for the Iberian peninsula, where demand has, after a long retreat, begun to pick up. Meanwhile traders noted that power demand in Germany, Europe’s biggest economy, was down 4% in the first nine month of 2014 at 396 TWh, according to BDEW data.