German Spot Jumps on Flagging Renewable Supply
On Tuesday, the German spot electricity price for Wednesday increased as wind and solar supplies were expected to decline while demand was expected to increase.
LSEG data show that German baseload power for the day ahead was up 58.9% at 236 euros per Megawatt Hour (MWh) by 0948 GMT. This is its highest level since June 25.
The French equivalent contract was flat, at 119 Euros/MWh.
According to LSEG analyst Naser Hahemi, a combination of increased demand and reduced renewable energy in Germany resulted in a larger residual load on Tuesday. The country is also expected to import additional electricity.
LSEG data shows that the German wind output will drop by 3.8 gigawatts to 590 megawatts, while French production is expected to increase by 250 MW to 1.1 GW.
The data revealed that the solar supply in Germany will fall from 3.2 GW to 1.9 GW.
LSEG's analysis shows that the output from German wind farms will gradually increase through the week, reaching nearly 3 GW Thursday and 8 GW Friday. However, it should remain low at the weekend.
The French nuclear capacity has dropped by two percentage points, to 77%.
LSEG data shows that power consumption in Germany will increase by 740 MW on Wednesday to 58.9 GW while French demand is expected decline by 80 MW at 51 GW.
The German power contract for 2025 was 73 euros/MWh. This is a 0.4% increase.
The European CO2 allowances in December 2024 increased 0.3%, to 65.40 Euro per metric tonne.
Henry Lush, Veyt's analyst, said: "With lower wind generation forecasts and more emissions-intensive electricity expected to increase demand for carbon permits." (Reporting and editing by Vijay Kishore; Forrest Crellin, Forrest Crellin)
(source: Reuters)
