Gas and Carbon Forward Contracts are on the Rise
The European power contracts for the year ahead rose on Friday as did gas and carbon contracts.
Analysts at Energi Danmark stated that "temperatures in Germany are above average and have been for a while, but signs of cooler weather next week, and uncertainty about gas deliveries to Europe, are bullish factors."
LSEG data show that the German 2025 baseload price rose by 1.1% at 1041 GMT to 91.45 Euros ($98.99) for a megawatt-hour. Earlier, the price had been.05 euros short of the highest recorded in a month and a quarter on Thursday.
The equivalent French position increased 0.2% to 75.35 Euro/MWh.
The European CO2 allowances expiring in December 2024 rose by 0.1%, to 66.65 Euros per metric ton.
Analysts at Energi Danmark said that the European carbon market has reached its highest level for around two months, as rising gas prices have caused a turnaround on a market that had fallen dramatically in recent weeks.
The Dutch wholesale gas for the first month of the year remained at its highest intraday level in 10 months on Friday morning, amid a colder forecast and geopolitical risk.
LSEG data revealed that the German and French Monday basisload power contracts were not traded on the spot side because wind power in Geramny was expected to increase on Monday.
LSEG data shows that the German wind power production is expected to increase 6.7 gigawatts to 13.6 GW, while French output will fall by 4 GW to 850 Megawatts.
The data shows that the German solar power supply will increase by 2.3 GW, to 4.4 GW.
The French nuclear capacity fell by two percentage points, to 75% after the Cattenom-3 reactor was forced offline due to an unplanned shutdown.
Operator EDF reported that the reactor was taken offline on Thursday night due to a problem with the cooling system in the secondary circuit.
The power consumption in Germany will remain at 56.2 GW, while the demand in France will rise by 1.9 GW. ($1 = 0.9238 euro) (Reporting and editing by Elaine Hardcastle; Forrest Crellin)
(source: Reuters)
