Sensible (German) government policy on renewable energy is driving down electricity prices there, as more and more solar and wind capacity is brought online, even as nuclear power is being phased out. From Bloomberg: Germany's Green Drive Subdues 2013 Power Prices.
Not unless supply increases or demand decreases are anticipated by the market. That's what's happening here: the market anticipates greater supply.
The time/value principle of money indicates that the only reason a person would be willing to pay a given price for an item that they will receive two years from now is because the price of that item will increase faster than the money could have appreciated in another investment in the same amount of time. If the spot price of electricity remains the same for a year, the buyer loses a minimum of the bond rate on that investment.
European energy use went down in 2008 and early 2009. Those that bought more power than needed then, bore that cost. With the instability of Europe, there is no incentive to invest further out than you have to. Another reason alternative energy is catching on: Five times! I wonder what the ROI for solar panels is in Deutchland.
