Gas and Carbon Forward Contracts are on the Rise
The European power contracts for the year ahead were released on Friday. They reflect higher carbon permits as well as gas contracts.
LSEG data show that the German 2025 baseload price rose by 1.7%, to 91.14 euros per megawatt-hour (MWh), at 1111 GMT. It had previously reached a high of 91.25 euro/MWh for two weeks.
The equivalent French position increased 3.2% to 77.15 Euro/MWh.
The European CO2 allowances expiring in December 2024 were up by 1.1% to 66.79 Euros per metric tonne.
Analysts at Energi Danmark said that the European carbon market has reached its highest level for about two months, as rising gas prices have triggered a market turnaround.
The Dutch wholesale gas for the first month of the year grew on Thursday to reach a 10-day-high on Friday morning, boosted by colder weather forecasts and geopolitical risk.
The spot price for the German Monday baseload contract is 114.75 Euros/MWh. This represents a 1.1% increase over the Friday price.
Both the French prices for Monday Armistice Day holiday and Tuesday were not traded.
LSEG data shows that the German wind output will increase by 2.1 gigawatts to 14.6 GW while French output should gain 1.1 GW up to 3.5 GW.
The data shows that the German solar energy supply is expected to drop by 800 megawatts to 2.3 GW Monday.
The French nuclear capacity fell by two percentage points, to 77%. This is due to the planned shutdown of two reactors.
The public holiday in France and Germany will cause the power consumption to decrease by 7.1 GW, or 1.4 GW.
The Paris-based spot exchange reported that Epex Spot traded 74,9 terawatt-hours (TWh), up 15% on a year ago, in its intraday markets and day-ahead.
The EEX also reported that the volume of French futures power contracts was up by 141%, at 135.2 TWh. $1 = 0.9272 Euros (Reporting and Editing by Forrest Crellin, David Goodman, Vera Eckert Additional reporting by Alban Cacher)
(source: Reuters)
