German contracts for the front year are affected by lower gas prices

German power contracts for the year ahead fell on Monday as gas contracts and carbon permit prices dropped.

By 0957 GMT, the German baseload power for the year ahead fell by 1.1% to $85.24 per megawatt-per-hour (MWh), while its French counterpart rose 0.2% to $63.85/MWh.

Dutch and British wholesale prices of gas fell on Monday morning, despite mild weather conditions and the beginning of talks between U.S. officials and Russians over a possible Ukrainian ceasefire.

LSEG data indicated that the German wind power production was expected to jump by 8.7 gigawatts to 11.1 GW while French output is projected to increase by 610 Megawatts to 2.6 GW.

On Tuesday, it was predicted that German solar production would drop by 1.4 GW. The data indicated that French output would increase by 420 megawatts to 3.8 gigawatts.

LSEG data shows that power consumption in Germany will increase by 1.9 GW Tuesday to 57.2 GW while in France, demand is expected to rise by 1.5 GW up to 52.4 GW.

The French nuclear capacity has increased by two percentage points to 74%.

LSEG data shows that the French baseload electricity for Tuesday was 91 euros (98.67 dollars) per megawatt hour (MWh). On Friday, the contract for Monday had not been traded.

The German day-ahead electricity had not yet begun trading at that time.

The benchmark contract on the European carbon markets fell by 0.4%, to 71.17 Euros per metric ton. In the latest global review of the International Energy Agency, renewable power capacity increased by 700 GW in 2020. This is a record-breaking annual increase for a 22nd consecutive time.

Along with the increase in nuclear power, 80% of global electricity came from sources that emit low levels of emissions. $1 = 0.9223 Euros (Reporting and Editing by David Goodman)

(source: Reuters)