Limited solar generation during cloudy week

Last week, overall solar generation was again below average in Northwest Europe. For several weeks, solar generation has been subpar due to heavy cloud cover. However, last week the Netherlands experienced relatively high wind generation for this time of year. By the end of Sunday, the wind sharply declined. Consequently, on Sunday, the Netherlands had a significant supply of renewable energy, causing prices to end negatively, dropping to -80 €/MWh. The average Dutch spot price was 65 €/MWh. Notably, there was a large price spread with Germany: the Netherlands was almost 13 euros cheaper last week. Especially during evening peaks, it is noticeable that inefficient coal-fired power plants determine the price in Germany when renewable generation is low. Looking at contracts for the coming months, gas remained very stable around 34 €/MWh and showed little movement. CO2 prices fell by one and a half euros to 74.1 €/EUA. Dutch power forwards dropped: June ultimately closed at 64.2 €/MWh after becoming about 6 euros cheaper last week, and July closed 2 euros lower at 73.5 €/MWh.

Forward contracts for next year experienced similar price movements. Gas dropped nearly one euro to 37.4 €/MWh. CO2 became one and a half euros cheaper and stood at 77 €/MWh. The clean spark spread for 2025 improved by half a euro and was -7 €/MWh after the Dutch CAL-25 contract dropped by one and a half euros, settling at 92.1 €/MWh.

Weekly changes