German spot prices fall on increased wind power

European spot prices fell on Monday due to a higher average wind output, which is expected to exceed the increase in demand.

LSEG data shows that the German day-ahead electricity price was 120.75 Euros ($124.77 per megawatt hour (MWh), down 9.7% on Friday's prices for Monday.

LSEG data shows that the French baseload electricity for Tuesday was priced at 144.50 Euros/MWh. On Friday, the contract for Monday's delivery was not traded.

LSEG analyst Florine Engl said that residual load in Germany is expected to decrease on Tuesday due to increased wind supply. Exports are also expected from Germany throughout the day.

LSEG data indicated that the German wind power production was expected to increase by 4.7 gigawatts to 30.7 GW while French output is projected to drop 1.8 GW to 2.4 GW.

The French nuclear availability remained flat at 82% total capacity, as two planned maintenance outages of reactors replaced reactors that were brought back online.

LSEG data shows that power consumption in Germany will increase by 1.6 GW Tuesday to 63.4 GW while France's demand is expected to grow by 1.4 GW up to 66.6 GW.

The German power price for the year ahead was up by 2.1%, at 102.40 Euros/MWh.

The contract for the first year of continuous service reached its highest level since November 25, at 102.80 Euros.

Analysts at Energi Danmark said that temperatures in Germany will be below average for the entire week.

They added that German power is also expected to increase as European gas contracts continue to rise on Monday.

The French continuous front-year contract increased 3.7%, reaching 74.25 Euros/MWh – its highest level since December 30.

The benchmark contract on the European carbon markets was up 1.7%, at 83.65 euro per metric ton. $1 = 0.9678 Euros (Reporting and Editing by David Goodman).

(source: Reuters)