German spot price rises due to lower wind supply

On Monday, the German spot electricity price increased as it was expected that wind and solar production would fall on Tuesday while demand is expected to rise.

By 0901 GMT on Tuesday, the German baseload electricity price was 123 euros per megawatt-hour (MWh), up 36.9% compared to Friday's price for Monday delivery.

LSEG data revealed that the equivalent French contract was 91 euros/MWh. The Friday contract for Monday was not traded.

Guro Marie Wyller of LSEG, an analyst, predicted that residual load in Germany would increase tomorrow, as the supply of wind and solar energy should decrease while demand rises.

LSEG data revealed that the German wind output is expected to drop by 13.5 gigawatts to 18.6 GW on Tuesday, while French output will rise by 8.2 GW up to 15.7 GW.

The German solar energy supply is expected to fall by 980 Megawatts (MW) or 1 GW.

The French nuclear capacity has increased by one percentage point, to 83%.

The data shows that power consumption in Germany is expected to increase by 2.5 GW on Tuesday to 61.5 GW while French demand is projected to drop 30 MW to 57.5 GW.

The German power price for the year ahead was 0.6% higher at 96.15 Euros/MWh, while Cal '25 in France increased by 1% to 77.75 Euros/MWh.

The price of European CO2 allowances that expire in December 2024 has risen by 1.8%, to 69.20 Euros per metric ton.

Henry Lush, Veyt's analyst, said that the combination of colder temperatures and higher wind speeds creates mixed signals this week. However, the trend towards the upside, which began in October, remains unchanged despite these mixed signals and the strong headwinds. ($1 = 0.9480 euros) (Reporting and editing by Krishna Chandra Eluri; Forrest Crellin)

(source: Reuters)