Europe

Forecasts of colder weather will remain the key driver across Europe’s largest markets in terms of providing an upside for electricity prices during the rest of the winter. Power demand softened in late January as a result of milder weather, with electricity supplies generally healthy. Strong winds in northwestern Europe kept a lid on prices and curtailed demand for thermal generation. However, a drop in temperatures in early February lifted spot prices amid relative supply tightness.

Higher demand for power in France in early February underpinned...