Germany's spot prices are up due to lower wind supplies

On Thursday, European power prices fluctuated amid fears of a decline in German wind energy supply.

Analysts at Energi Danmark said that the German power market experienced a decline by the close of the market in response to Tuesday's late price drop on the carbon and gas markets.

The temperatures in Germany may not be as high as they are in August but geopolitical worries should keep the market from experiencing a major downturn.

By 823 GMT, the price of German baseload electricity for Thursday had risen 18.6% to 63 euros ($70.02 per megawatt-hour (MWh).

The French power price for the day ahead fell by 4.6%, to 36.75 Euros/MWh.

LSEG data indicated that the German wind power production is expected to drop by 5.6 gigawatts on Thursday, to 17.9 GW. Meanwhile, French wind power is expected add 180 megawatts to 3.4 GW.

According to data, the solar power supply in Germany has also decreased by 520MW at 13.6GW.

LSEG analyst Naser Hahemi stated that the residual load is expected to be positive for three hours starting at 12 noon on Thursday. As a result, Germany will be exporting during those hours.

The French nuclear capacity remained unchanged at 73%.

LSEG data shows that power consumption in Germany will increase by 260 MW on Thursday to 53.4 GW. In France, demand is expected to rise by 930 MW, to 41.4 GW.

The German power contract for the year ahead fell 0.1% to 97.70 Euros/MWh. Meanwhile, the French baseload contract for 2025 was not traded with an asking price of 85.15 Euros/MWh.

The European CO2 allowances in December 2024 increased 0.6%, to 73.54 euro per metric ton. ($1 = $0.8998 euros)

(source: Reuters)