Lower renewables lifts spot price
On Monday, the German spot electricity price increased as expected declines in wind and solar production and increasing demand placed bullish pressure on day-ahead prices.
By 0933 GMT on Tuesday, the German baseload electricity price was 69.75 Euros per megawatt-hour (MWh), up 33.5% compared to Friday's price for Monday delivery.
LSEG data revealed that the equivalent French contract was 59.50 Euros/MWh. On Friday, the Monday price was not traded.
According to LSEG analyst Naser Hashemi, an increase in residual load in Germany is expected on Tuesday as a result of lower wind and solar energy output and increased demand.
He added that this is similar to what will happen in France and The Netherlands tomorrow, which strengthens the bearish signals.
LSEG data indicated that the German wind output is expected to decline by 3.7 gigawatts to 57.2 GW on Tuesday, while French output will drop from 6.1 GW down to 5.8 GW.
The data revealed that the German solar energy supply is expected to drop by 400 megawatts to 6.6 GW.
The French nuclear capacity has increased by one percentage point, to 70%.
The data revealed that power consumption in Germany was expected to rise on Tuesday by 1.8 GW up to 57.2 GW while French demand is projected to grow by 2.1 GW up to 45.3 GW.
The German power for the year ahead was down by 0.2% to 87.60 Euros/MWh. Cal '25 in France was up by 0.9% to 71.95 Euros/MWh.
The price of European CO2 allowances expiring in December 2024 fell by 0.2%, to 66.23 Euros per metric ton.
Henry Lush, Veyt's analyst, said: "For the coming week, increased emissions-intensive generation from coal will send a bullish message, but this will be offset by a strong wind generation in the early part of the week, which will push some thermal power generation out of the mix." (Reporting and editing by Ed Osmond; Forrest Crellin)
(source: Reuters)
