LONDON, June 24, 2015 /PRNewswire/ -- German day-ahead electricity prices averaged EUR25.30 per megawatt hour (MWh) in May, their lowest monthly average in 12 years as wind, solar and hydro combined to crash the prompt market, according to data released by Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.

At just under 10 terawatt hours (TWh), German wind and solar generation in May was up 22% year over year. Improved hydro levels in the Alps and the Nordic region added to oversupply across the region, with cross border power flows maximized between Germany/Austria, France and the Benelux nations by the switch to flow-based market coupling May 21.

European power prices, according to Platts' Continental Power Index (CONTI)*, plunged 24% in May to EUR27.37/MWh compared to April's EUR36.03/MWh. The Index was down 16.35% compared to May 2014's EUR32.72/MWh.

Platts' regional analysis of European power and gas markets in May showed the following:

    --  Germany: Day-ahead power prices fell 16% month over month and 19% year
        over year as wind and solar output outstripped that of Germany's nine
        remaining nuclear reactors. At the same time, the 900-MW GKM 9
        coal-fired generator began commercial operation. This is one of seven
        new coal units that, by year-end, will have added 6-GW to the German
        generation fleet.
    --  France: Day-ahead power prices fell 34% month over month and 13% from a
        year ago, as power consumption declined 2.7% year over year to 33.6 TWh.
        Nuclear output was down 4% on the year to 30.3 TWh, the lowest level for
        May in three years. Hydroelectric power, the second-largest source of
        French production, fell 3.6% to 5.7 TWh.
    --  U.K.: Day-ahead power prices averaged £40.82/MWh in May, down 6% from
        April but up 2% from May 2014. Increased production from wind farms and
        gas-fired power stations offset a drop in coal-fired output, with wind
        surging to more than 2 TWh, nearly double that of May 2014.
    --  U.K. day-ahead gas prices at the National Balancing Point fell 5% month
        over month in May to an average of 44.04 pence per therm (p/th). On a
        year-over-year basis, prices were down 3%.
    --  Netherlands: On the Dutch TTF, continental Europe's most liquid natural
        gas hub, day-ahead gas prices in May averaged EUR20.55/MWh. That was
        down 6% from April but up 8% from a year ago. Lower production quotas at
        the giant Groningen gas field provided price support last month versus
        May 2014, while a down turn in Dutch production from June 1 further
        tightened the market.

"Norwegian gas production outages drove the little there was by way of volatility in May, and maintenance overruns remained a source of price risk concern," said Platts' Team Leader of European Gas Reginald Ajuonuma.

Indeed, ongoing and new unplanned outages in Norway restricted European gas supply into early June, pushing U.K. day-ahead gas prices back over 43 p/th through to June 23.

No such tightness was seen in European power markets into early June, with strong solar output keeping a lid on prompt prices in Germany and surrounding markets. On June 23 German day-ahead power was assessed by Platts at EUR32.50/MWh.

    Platts Continental Europe and U.K. Day-Ahead Monthly Averages

                                                                  May-15       Apr-15       May-14

    CONTI (EUR/MWh)                                                      27.37        36.03        32.72

    TTF (EUR/MWh)                                                        20.55        21.97        19.01

    U.K. Power (BPS/MWh)                                                 40.82        43.62        39.83

    U.K. Gas (pence/therm)                                               44.04        46.58        45.32


    Source: Platts

    NOTE: All figures are
     monthly averages of daily
     day-ahead contract prices
     as assessed by Platts.

For more information on electric power or the methodology used by Platts in its power assessments, visit the Platts website www.platts.com.

* The Platts CONTI is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands. The Platts U.K. assessments reflect day-ahead contracts assessed for firm delivery of power on the high voltage network of England, Wales and Scotland, and at the National Balancing Point (NBP) for gas. The Platts assessments reflect prices as determined between buyer and seller in the open physical markets.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets. A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in London with more than 1,000 employees in more than 15 offices worldwide. Additional information is available at www.platts.com.

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Media Contact: Global, EMEA & U.S.: Kathleen Tanzy, Kathleen.tanzy@platts.com, +1 212-904-2860, +1 917-331-4607

SOURCE Platts

SOURCE: Platts