(Bloomberg) -- The remnants of Hurricane Kirk are continuing to have an impact on Europe with the highest wind generation on Sunday since February forecast by Bloomberg models.
Wind generation is estimated to reach 49 gigawatts at 2pm on Sunday. This comes as the remnants of Hurricane Kirk, now a storm, move through the continent. In Germany, winds could be about 65 kilometers an hour in some parts of the north of the country, with more extreme conditions forecast for the rest of the weekend according to forecaster DWD.
Power prices in Germany for Sunday are trading at €13.50 a megawatt-hour, according to broker data compiled by Bloomberg, which would be the lowest day-ahead since early July.
Day-ahead electricity in Germany, Europe’s largest power market, slid to the lowest this week with hourly prices dropping sharply on Saturday evening as wind levels pick up, according to data from Epex Spot SE. Auction data for Sunday — when the wind levels reach their peak — are not yet available, but on similar days prices have turned negative.
Negative prices are common in major European markets like Germany, especially on the windiest and sunniest days. In summer, the market can slip below zero at about midday when the sun is strongest, but wind power is more volatile and makes up a larger proportion of renewable power in the winter.
The blustery conditions coincide with cooling temperatures in Europe, with heating demand expected to creep up this weekend and into the start of next week.
German day-ahead power declined to €56.37 a megawatt-hour, Epex Spot data show. The equivalent French contract settled at €50.06 a megawatt-hour.
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