Low wind and cold weather prompts prices to be at their highest level in two years
The European power market saw a new high of two years on Wednesday, amid cold temperatures and low wind supplies.
LSEG's analysis showed that the demand for electricity in the region was increasing, while wind and gas generation declined. However, solar and coal production was on the rise.
At 0850 GMT the French baseload day-ahead was up 12.8% to 190 euros ($199.65). This is the highest since December 2022.
The German contract equivalent was bid at 312, which is well above the previous closing of 245 Euros/MWh. This level was last seen December 2022.
The German wind output is expected to drop to 2.9 gigawatts from 4.3 GW. This is already a low level. Wind power in France will also decline from 5.9 GW to 3.8 GW.
The French nuclear capacity remained at 85 percent of the total.
On Tuesday, striking workers at the Paluel nuclear reactor in France disrupted 1.5 GW of the French site's supply.
The day-ahead forecast for Germany shows a decline of 300 MW, to 63.9 GW. In France, the forecast is 2.9 GW more to 68.3 GW.
The German power contract for 2025 was not traded but is expected to increase after closing at 94.3 Euros/MWh.
The European CO2 allowances in December 2024 increased by 0.6%, to 68.55 Euros per metric ton.
Data analysis revealed that global exports and thermal coal use will be at all-time-highs in 2024 despite the unprecedented rollout of renewable energy capacity.
(source: Reuters)
