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Danish power prices spike on low wind and grid issues

06 Jun 2013 15:40 (+01:00 GMT)
Danish power prices spike on low wind and grid issues

London, 6 June (Argus) — Wholesale power prices for delivery in west Denmark tomorrow spiked to their maximum €2,000/MWh level on the Nordpool spot exchange as low wind levels and a low imports left the region undersupplied.

The prices in hours 10 and 11 in the DK1 zone, one of two Danish price zones, settled at the maximum possible level of €2,000/MWh and were also at over €1,900/MWh in hours 8, 9 and 12. Remaining hours settled at more usual levels of €30-50/MWh but the daily average for the DK1 zone was pushed to €436.33/MWh. The spike was caused by a lack of offers in the market and Nordpool had to make pro-rata reductions of between 0.12pc (2.7MW) and 1.93pc (42.6MW) to bids placed in the DK1 zone.

Total demand in west Denmark currently peaks at around 2GW in the hours that spiked. No conventional plant outages were reported, but Danish wind generation is forecast to average less than 200MW tomorrow, out of an installed capacity of over 4GW. Imports were restricted by interconnector and internal grid congestion. In the affected hours, 700MW of imports were scheduled from Norway, compared with installed capacity of 1GW, and 150MW from Germany, compared with installed capacity of 1.5GW. Although 680MW of import capacity from Sweden was available, none was allocated which is said to be because of internal grid congestion in Denmark.

The grid works started on 1 June and are scheduled to last until 9 June. Lower demand over the weekend should limit the risk of further price spikes. The impact on the system price for the whole Nordic region was limited because of the small size of the DK1 zone and it settled at €39.89/MWh, only €0.07/MWh higher than the previous session.

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