(Bloomberg) — European power prices turned negative in several markets as Storm Amy is set to drive record wind generation this weekend.
Power prices for Saturday in the UK, Germany and the Netherlands all settled below zero. Wind generation in the UK and Germany are both forecast to reach new highs, according to Bloomberg models.
Amber alerts are in place for parts of Scotland and Northern Ireland with gusts in excess of 95 miles per hour expected, according to the UK Met Office. Bloomberg analysis, based on an internal model, predicts wind generation could reach as much as 24 gigawatts on Friday afternoon, with high output continuing into Saturday. The previous record set was 22.5 gigawatts last December, data from the National Energy System Operator shows.
Storms can at times bolster Europe’s energy supplies by increasing renewable generation and reducing the need for gas-fired power. Traders will be closely watching output as heating season begins, since stronger wind generation reduces how much gas needs to be drawn from storage on peak-demand days.
German wind generation is expected to surge above 54 gigawatts on Saturday according to a Bloomberg model, beating a previous record of just above 53 gigawatts in December 2023. UK day-ahead power prices fell to -£0.42 per megawatt-hour, according to data from Epex Spot SE. The equivalent contract in Germany settled at -€0.29 per megawatt-hour.
Negative electricity prices — which occur when abundant cheap power outstrips grid demand — have become a regular feature of European markets, often appearing at midday during the solar peak. However a full day of negative prices is relatively rare, and the UK has not recorded one since 2023.
In The UK, the extreme weather is also disrupting transport. Avanti West Coast has advised rail passengers not to travel north from England to parts of Scotland after 5 p.m. on Friday, or at all on Saturday. The Met Office warned of further disruptions to flights and road travel due to the heavy rain and strong winds. Yellow warnings have been issued on Saturday for large parts of England including London.
Windy weather is also expected across large parts of northwestern France, with yellow wind warnings in place by Meteo France for Saturday stretching as far east as Paris. Electricite de France SA said it would reduce nuclear output at some sites due to “economic reasons” as high wind generation could push down power prices. Power prices for delivery on Saturday in France did not drop below zero but settled at €4.62 per megawatt-hour.
Storm Amy, driven by low-pressure systems in the Atlantic, has been intensified by recent interactions with Hurricanes Humberto and Imelda.
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