November power prices slide after warm October

Last week, the Netherlands experienced several days when wind power generation significantly decreased, while in Germany, there was a consistent amount of wind generation throughout the week. Starting from Sunday, the wind picked up significantly in Northwestern Europe. During the workweek, it was primarily coal and gas-fired power plants that had to meet the demand. Coal power plants were often marginal during the nighttime, while gas-fired power plants determined the price during peak hours. On Sunday, the first 14 hours were around 0 €/MWh. The average weekly spot price was 100.3 €/MWh compared to 92.3 €/MWh the previous week. The average gas price was slightly higher than the previous week at 47.9 €/MWh.
For November and December, gas became slightly cheaper. The gas price for November dropped by half a euro to 50.5 €/MWh, and December became 2.5 euros cheaper, closing the week at 53 €/MWh. CO2 dropped by 2 euros to 79.3 €/EUA.
Dutch power prices dropped significantly. Particularly, November saw a significant decrease of 13 euros, closing at 105.4 €/MWh. December became 10 euros cheaper and closed at 116.3 €/MWh. Consequently, the clean spark spreads for these months also decreased significantly. The spark spread for November dropped by nearly 11 euros towards -20 €/MWh. The average spark spread in October currently remains at a similar level. The warm and windy weather, along with the increased costs of gas power plants, contributed to this trend.

Last week, the International Energy Agency published the World Energy Outlook 2023, in which it is assumed that electric vehicles will be the main driver in the electrification of Europe. By 2050, it is expected that there will be around 200 million electric vehicles compared to the current 6 million.
For next year, gas prices dropped by nearly 3 euros to 53.8 €/MWh. CO2 became 2 euros cheaper and ended at 83.3 €/EUA. The Dutch power contract decreased by 6 euros to 123.1 €/MWh. The clean spark spread slightly worsened and was -9.5 €/MWh. The dark spread reduced by one and a half euros but remained positive at 5.8 €/MWh.

Weekly changes