German wind power supply increases, lowering spot prices

The European spot electricity prices for Wednesday dropped on Tuesday, as the wind power generation in Germany is expected to increase and demand is expected to fall throughout the region.

German power for the day ahead fell by 23.9% at 1001 GMT to 83 Euro per Megawatt Hour.

LSEG data shows that the French baseload rate for the day to come was 94 euros/MWh - down 13.8%.

LSEG analyst Florine Engl said that residual load in Germany is decreasing due to an increase in wind supply. Forecasts indicate that exports will continue to be made throughout the day.

LSEG data revealed that on the supply side Germany expected wind output to drop by 5.6 gigawatts to 20.6 GW, while French output was predicted to increase 510 megawatts to 2.9 GW, day-on-day.

The French nuclear capacity increased by one percentage point, to 79% total capacity, with the return of the Chinon 4, reactor.

LSEG data shows that power consumption in Germany will decrease by 510 MW on Wednesday to 60.1 GW. In France, demand is expected to fall 1.6 GW to 59.7 GW.

The German baseload contract for the year ahead was down 2.6% to 83.20 Euros/MWh.

The French year-ahead price fell by 2%, to 61.80 Euros/MWh. It had previously reached a low of 61.50 Euros on July 5, a period when it was at its lowest since that date.

The benchmark contract for the European carbon market in 2025 was down 0.5%, at 73.31 euro per metric ton.

Henry Lush, Veyt's analyst, said that the uncertainty caused by changing US policy in Ukraine had lowered gas prices, and also affected EU carbon prices, which dropped 12.3% in Februrary. Reporting by Forrest Crellin, Editing by Tasimzahid

(source: Reuters)