Fuels and carbon gain from a curve that shows a fall in spot prices
The European spot electricity prices fell on Friday on the back of forecasts that higher wind generation will be occurring and lower demand on Germany's main market. Forward contracts, however, rose in line with gains on fuel and carbon markets.
In a spot-analysis, LSEG analyst Naser Hahemi said that "an increase in wind in Germany and the Central Western European countries is the main reason, pointing out a slightly negative signal compared to yesterday."
The French baseload for the day ahead fell by 3.4%, to 114 Euros ($120.01 per megawatt-hour (MWh).
At 0840 GMT the equivalent German contract had settled at 121 Euros/MWh.
On Friday, the German wind power production is expected to increase by 5.1 gigawatts to 30.2 GW.
The French nuclear capacity remained at 85 percent of the total.
The power consumption in Germany will decrease from 62.8 GW to 61.7 GW during the review period, while in France, it is expected to increase by 1.4 GW, reaching 64.7 GW, on Friday.
The German baseload contract for 2025 added 1.7% at 100.2 Euros/MWh, while the French 2025 contract gained 1.3% at 81.2 euros.
The price of oil has risen due to geopolitical tensions.
The European CO2 allowances in December 2024 increased by 1.3%, to 69.28 Euros per metric ton.
According to LSEG's power market data, the average wholesale base electricity prices in Europe including Germany and France reached their highest level in at least twenty months in November.
The economic growth of Germany has been affected by the industrial downturn that resulted from Germany's export-oriented manufacturers having to deal with higher energy prices.
The two options presented at a U.N. Climate Summit in Baku to limit the damage that rising temperatures cause were so different, no one was happy. ($1 = 0.9499 euro) (Reporting and editing by Toby Chopra; Vera Eckert)
(source: Reuters)
