German spot falls due to drop in usage, while French spots rises on lower wind forecast
The French wholesale electricity price rose on Thursday, as a result of the lower expected wind power production in the region. German prices dropped due to a decline in demand.
LSEG analyst Francisco Gaspar Machado stated that thermal capacity will shift from German gas to French coal, Dutch gas to German coal and lignite.
German baseload power for Friday stood 2.6% lower at 0810 GMT, trading at 75.3 euros ($83.94) per megawatt hour (MWh).
The French baseload day-ahead price rose by 13.6% to 62.8 euros/MWh from its previous close of 62.8 Euros/MWh.
LSEG data show that the German wind power production is expected on Friday to drop by 800 megawatts to 18.3 gigawatts, while French wind output is predicted to fall from 3.1 GW down to 3.6 GW.
The French nuclear capacity has increased by six percentage points to 75%.
On Friday, demand in Germany will likely fall by 1.3 GW, to 54.1 GW, while in France, it is expected to drop by 300 MW, to 42.2 GW.
Next week, temperatures are expected to drop by an average of 2.5-3.6 degrees Celsius and 0.4-0.9 degree Celsius per day compared to Thursday's levels.
Curve prices tracked firmer global energy costs, which were a response to the large rate reductions from the U.S. Federal Reserve. This is expected to stimulate economic activity.
The German power contract for the year ahead increased by 1.1%, to reach 87.0 euros/MWh. The French baseload contract for 2025 increased by 1.2%, reaching 70.6 euros/MWh.
The European CO2 allowances in December 2024 are 0.9% higher, at 64.3 Euros per metric ton.
The German federal network agency examines whether the power-balancing market could be conducive to insider trading. The investigation is not linked to a particular timeline. Reporting by Vera Eckert and editing by Emelia Matarise.
(source: Reuters)
