High Winds + Wind Farms = Falling Electricity Prices
The powerful winter storms that moved across Europe in March precipitated a considerable spike in electricity supply on the European grid, thanks to continental wind farms.
Wind speeds of 100 mph were recorded across Europe and topped 135 mph at the Czech Republic’s highest mountain, Snezka. The surplus electricity on the grid, produced mostly by German and Danish wind farms pushed prices down by 12% on the spot market.
Traders buying and selling round-the-clock power reported that the ‘day ahead’ price in central Europe’s power market dropped to €49.5 ($76) per megawatt hour compared with €56 at the end of the previous week, according to a piece at Planet Ark. Unfortunately, the article also suggests that sudden drops in electricity prices on the spot market have little effect on end-use rates.
