Flagging 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 (story: Montel News).

With wind generation in Germany at its lowest level since 2014, the country was producing 700 MW of power from oil-fired units in early November – 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.”

For the full story in English is available on Montel News page here.