French prompts on increasing demand as temperatures drop

The French spot electricity prices rose on February 2nd on the back of increased demand on the weather-exposed wholesale markets, as well as a reduction in wind generation and a tightening of nuclear supply in the country.

LSEG data show that the French power price for the day ahead was 70.5 euros ($73.51 per megawatt-hour (MWh) as of 0855 GMT. This is up 90.5% compared to a day before.

The German baseload was not traded for the next day, after closing at 103.8 Euros, which is a significant premium to France.

LSEG data showed that power consumption in Germany was expected to rise by 0.5 gigawatts to 62.2 GW Wednesday, while in France it is anticipated to increase 0.8 GW up to 62.3 GW.

The temperatures in both countries are expected to drop by four degrees Celsius on average over the next week, compared to Tuesday's levels.

The French wind power output is expected to drop by 4.4 GW per day to 11.9 GW. Germany's output was expected to increase by 4.5 GW, reaching 32.4 GW.

The French nuclear capacity remained at 82%, a 10 percent lower level than Monday.

The German baseload contract for the year ahead was 0.4% higher at 92.3 Euro/MWh while the French position, which closed at 65.8 euro, was not traded.

The benchmark contract for the European carbon market 2025 was down 0.3% at 79.17 euro per metric ton.

Euronext, the pan-European stock market, announced Tuesday that it will acquire Nasdaq’s Nordic Power Futures business.

Tennet, the German energy system operator, reported that in 2024 it will transmit 8% more wind from the North Sea to Germany's onshore grid at a total of 20.8 TWh. This made North Sea wind power 14% of Germany’s total feed-in. $1 = 0.9590 euro (Reporting and editing by Emelia Sithole Matarise).

(source: Reuters)