Front-year contracts are boosted by rising gas and carbon prices
The European power contracts for the year ahead were released on Thursday. They reflect higher carbon permits as well as gas contracts.
The German power contract for the year ahead was up 3.1% to 94.25 Euros ($99.09), after hitting a high of 94.50 Euros earlier. Meanwhile, the French baseload contract for 2025 rose 3%, reaching 77.25 EUR/MWh.
The European CO2 allowances in December 2024 increased by 2.7%, to 68.08 Euros per metric ton.
Energi Danmark's daily report stated that the German market has recovered due to new concerns regarding Russian gas deliveries.
Dutch and British wholesale rates reached their highest intraday levels in almost one year, after Austrian energy company OMV announced that it expected a worsening contract with Gazprom export.
The German day-ahead contract grew slightly due to lower expectations of wind.
The German contract for baseload power on Friday rose by 1.1% to 123 euros/MWh. However, the French equivalent fell 2.8% to 122.5 euros/MWh.
Guro Marie Wyller, LSEG analyst, said that "a small reduction in wind power and a small rise in solar power production is not enough to offset the reduction in demand (on Friday)."
LSEG data indicated that the German wind power production was expected to drop by 3.2 gigawatts on Friday, to 13.6 GW.
The French nuclear capacity remained at 80%.
LSEG data indicated that power consumption in Germany will be lowered by 720 megawatts to 60.1 GW this Friday.
LSEG has not provided forecasts for French wind demand or supply. $1 = 0.9511 Euros (Reporting and editing by Alban Kach; Forrest Crellin, Shreya Biwas)
(source: Reuters)
