German spot prices increase as wind power drops

On Monday, the German spot electricity price increased as it was anticipated that consumption would increase and wind power would decline.

LSEG data shows that the German baseload electricity for Tuesday reached 100.00 euros per Megawatt Hour (MWh) at 1027 GMT. This is up 35.00 Euros from Friday's last day-ahead trading price.

Prices have rebounded following a weekend drop due to weaker demand, and strong wind energy output.

The German wind power output will likely drop tomorrow and consumption will increase. Analysts at LSEG say that these bullish changes can only be partially offset by a slight increase in solar energy output.

The German baseload contract for the front year was up 0.45 euros at 88.95 Euros/MWh.

The French equivalent contract increased by 0.30 euros to 75.70 Euro/MWh.

The benchmark contract on the European carbon markets rose 1.17 euros to 65.79 euro per metric ton.

Last week, the carbon contract increased by 4% on a weekly basis.

Analysts at Veyt stated that "after a week of decoupling the gas and carbon price again showed a clearly sign of correlation on Thursday following the rally in the energy complex." (Reporting by Susanna Twidale, London; Editing by Nina Chestney).

(source: Reuters)