LONDON, Nov. 24, 2015 /PRNewswire/ -- Continental European power prices perked up in October on the back of reduced nuclear generation and a slump in wind and solar output in the dominant export market of Germany, according to data released by Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.

European power prices, according to the Platts Continental Power Index (CONTI)*, climbed 16.4% to EUR42.10 per megawatt hour (MWh) in October. On a year-over-year basis, the index was up 6.6%.

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

    --  Germany: German day-ahead prices last month averaged EUR38.47/MWh, a
        two-year high amid below-average wind output and reduced nuclear
        generation. German wind and solar power output in October totaled 5.9
        terawatt hours (TWh), the lowest level since November 2014 and 35% below
        September.

    --  France: Day-ahead prices averaged EUR43.97/MWh in October, up 17% month
        over month and 6% year over year. Colder temperatures caused electricity
        demand for heating purposes to rise 5.2% year over year to 37.74 TWh.
        Near-curve contracts, however, continue to reflect underlying
        oversupply, with front month November power falling 15% in value year
        over year to EUR41.95/MWh.

    --  U.K. power: Day-ahead power prices fell 4% month over month and 10% year
        over year to £39.88/MWh in October as mild temperatures and plummeting
        gas prices drove down demand and generation costs. Wind output was
        subdued into late October, however, and much tighter capacity margins
        caused price spikes in early November as thermal units went offline
        unexpectedly.

    --  U.K. gas: National Balancing Point (NBP) day-ahead gas prices were
        delivered at an average of 39.55 pence/therm in October, down 3.65%
        month over month and down more than 21% over year. U.K. shippers took
        advantage of low spot prices to build storage levels, with stocks moving
        from 3.53 billion cubic meters (Bcm) (86.25% full), at the start of the
        month and finishing at 3.8 Bcm (92.84% full) at the end.
    --  European gas: Dutch TTF, Europe's most liquid natural gas trading hub,
        spot gas prices averaged EUR18.25/MWh for October delivery, 4.9% down
        month over month and 13.73% lower year over year amid subdued demand and
        generally comfortable supply. Bearish sentiment pushed delivered TTF
        day-ahead prices to their lowest level since August 2014, dipping to
        EUR17.375/MWh at the end of the month. Periodic bouts of colder weather
        were unable to push spot prices up significantly, with total demand down
        5% year over year in October to just under 6 Bcm, driven by sharp falls
        in exports and storage injections.

In a European energy market characterized by healthy supply and falling commodity prices, the U.K.'s security of electricity supply looked unusually exposed early November, said Platts Power in Europe editor Henry Edwardes-Evans. "National Grid called for 500 MW of extra capacity and issued an inadequate generation warning November 4 that saw system buy prices spiking up well over £400/MWh."

Further U.K. power system warnings are expected this winter, while winter 2016 "is beginning to look tighter still in terms of supply, with several large coal-fired power stations due for closure next year," Edwardes-Evans noted.

Under a cold, low wind scenario, Platts Eclipse Energy, an analytics and forecasting unit of Platts, expects prices above £150/MWh for roughly 7% of half hours in Winter 2016.

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

                                                                  Oct-15       Sept-15       Oct-14

    CONTI (EUR/MWh)                                                      42.10         36.16        39.50

    TTF (EUR/MWh)                                                        18.21         19.18        21.15

    U.K. Power (BPS/MWh)                                                 39.88         41.73        44.12

    U.K. Gas (pence/therm)                                               39.55         41.04        50.41

    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.

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SOURCE Platts

SOURCE: Platts