Low wind supply and rising demand boost spot prices

European spot electricity prices increased on Monday due to a decline in regional wind power and an increase in demand forecasts.

By 0944 GMT on Tuesday, the German baseload electricity price was 100.50 Euros per megawatt-hour (MWh), up 5.8% compared to Friday's price for Monday delivery.

LSEG data shows that the equivalent French contract has nearly tripled to 71.25 Euro/MWh. This is a 196.9% increase from the price paid on Friday for delivery Monday.

"In Germany, despite the fact that solar power was up compared to yesterday, lower windpower and higher consumption results in a greater residual load (on Monday)," said LSEG analyst Naser Hahemi. Imports are also expected.

LSEG data shows that German wind power production is expected to decline by 3.2 gigawatts on Tuesday, to 6.7 GW. French output is forecast to drop by 320 megawatts to 2.2 GW.

The data revealed that the German solar power supply is expected to increase by 2.2 GW up to 14.5GW.

LSEG data shows that power from German windmills will increase to 11 GW by Wednesday and then drop to 9 GW by Thursday and 5 GW by Friday.

The French nuclear capacity has increased by one percentage point, to 72%.

The data indicated that power consumption in Germany is expected to increase by 2 GW Tuesday, to 54.4 GW. In France, demand was also projected to rise by two GWs to 43.2 GW.

The German power for the year ahead was down by 1.1% to 94.60 Euros/MWh, while its French counterpart, Cal '25 was not traded after it closed on Friday at 82.50 Euros/MWh.

The price of European CO2 permits for December 2024 expired dropped by 1.3%, to 71.25 euro per metric ton. (Reporting and editing by Susan Fenton; Forrest Crellin)

(source: Reuters)