May 2012 | Aluminium Weekly Market Tracker
German power markets tumbling: Electricity analysis
Although German electricity prices fell, as lower demand for domestic energy offset expectations of higher power prices due to government decision to terminate the use of nuclear power, a decline in power prices has not come soon enough to prevent another German plant - Klesch’s Voerde from bankruptcy.
Now one year on from Germany’s decision to terminate the use of nuclear
power, which included the almost immediate decommissioning of close to
8.3W of generating capacity, it is becoming clear that the feared
electricity price spike due to insufficient capacity is not going to
occur. In fact in early May spot power prices in the country are
holding near their lowest level for 17 months at €40MWh ($50). This
compares with a level of €64MWh back in August 2011. The main reason
for fall is a notable easing in demand on the back of slower economic
activity, but...
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