Prices Surge Amid Wind Shortfall and Cold Snap in Europe

Power prices experienced a significant increase last week, primarily driven by a sharp decline in wind generation across the continent. In the Netherlands, the average weekly spot price settled at €143/MWh, marking a notable rise of €43 compared to the previous week. Low wind along with a significant drop in the temperature, heightened the electricity demand, particularly in France, where electrical heating is widely used.
Wednesday was the most bullish day of the week and the baseload prices in the Netherlands on this day cleared at €207 /MWh due to poor renewable generation.
The TTF front month prices i.e. the February 2025 contract increased by €1.9 and concluded the week at €46.9 /MWh. The Dec-2025 EUA prices saw an increase of €4.4 and concluded the week at €79.3 /EUA.
Due to the increase in fuel prices, the prices of the Dutch baseload power contracts also went up. The February baseload power contract increased by €6.9 and concluded the week at €104.5 /MWh. The Clean Spark Spread (CSS) for the front month showed some improvements and increased by €1.8 and ended the week at -13.4 €/MWh.
The European Electricity Grid Operator Association, ENTSO-E, has announced a delay in releasing its report on the bidding zone review study, originally scheduled for January 27, to spring 2025. According to a spokesperson, the publication of the Bidding Zone Study and accompanying recommendations has been rescheduled, with further updates to be provided when available. This report, highly anticipated, has faced multiple delays, with the January 27 release date only confirmed in December 2024.
The current bidding zone configurations of countries such as France, Germany-Luxembourg, Italy, the Netherlands, and Sweden are under review for possible reconfiguration as part of the Bidding Zone Review (BZR). The process follows the methodology established by the EU energy regulatory authority ACER in 2020.

For 2026, gas prices increased by €1.2, closing at €39.8 /MWh. The EUA prices also increased by €4.5, ending the week at €81.6 /EUA. Dutch power prices increased by €5, closing at 92.7 €/MWh. The CSS for 2026 increased slightly by €1 and concluded at -12.4 €/MWh.

Weekly changes