French spot prices drop on mild temperatures and high winds
French prompt power prices dropped on Monday due to mild temperatures and the expectation of high German wind power output.
The price of French baseload electricity for Tuesday dropped by more than 40%, to 72.25 Euros ($74.82).
William Peck, Energy Aspects analyst, said that the primary reason for this is because these days were very mild. The French grid operator RTE predicted them to be 3-5 degrees Celsius above normal. He also mentioned high wind power levels in France and Germany.
German day-ahead electricity had not yet traded by 1042 GMT, after closing at 121.55 euro/MWh.
LSEG data indicated that the German wind power production was expected Tuesday to drop by 610 megawatts to 45.1 GW. The French wind power output is expected to fall by 5.6 gigawatts to 11.5 GW.
The French nuclear capacity has fallen by three percentage points, to 82%.
LSEG data shows that power consumption in Germany will rise by 4.1 GW, to 61.7 GW, on Tuesday.
Analyst Francisco Gaspar Machado of LSEG said that Germany will be a net exporter all day. This is due to the fact that wind power production has decreased and the demand for electricity has increased.
The German power contract for 2026 was down 1.6% to 71.85 Euros/MWh, while the French baseload contract fell 0.4% to 92.25 Euros/MWh.
The benchmark contract on the European carbon CFI2Zc1 market fell 1.4%, to 74.8 euro per metric ton. $1 = 0.9656 euro (Reporting and editing by Barbara Lewis; Alban Kacher)
(source: Reuters)
