Electricity prices in Europe dipped in December as mild temperatures, strong winds and stormy weather produced wind power records in Germany, France and the U.K.

According to Platts, a global energy information provider, energy prices across Continental Europe fell by 0.4 per cent in December 2013 compared to November 2013, when calmer winds and colder temperatures supressed wind power and boosted electricity prices.

The price decline was even more marked in Germany, where the average baseload price in December fell 10 per cent month over month.

“Last month’s European power prices demonstrate growing price volatility observed in the winter months due to the capricious nature of the wind,” said Henry Edwardes-Evans from Platts in Europe. “When wind power generation drops, Europe’s power system often falls back on expensive natural gas-fired generators, and prices rally. When the wind blows, prices can actually turn negative as wind operators continue to feed subsidised…