Prices plummet as wind power surges in
The European wholesale electricity prices fell sharply on the Wednesday following predictions of a large increase in wind power volume in the days ahead.
Naser Hashemi of LSEG, an analyst, stated that the anticipated increase in supply sent bearish signs. He listed no factors bullish and added that gas-to power availability in Germany is also increasing.
The German baseload electricity for Thursday closed at 60.0 Euros ($67.15 per megawatt-hour (MWh) in the morning GMT, a decrease of 26.6% compared to its previous close.
The French equivalent contract was 22.8 euros/MWh - a 52.6% decrease.
LSEG data indicated that the German wind power output is expected to increase to 31.3 gigawatts on Thursday from 23.0 GW, and French wind output will gain 5.3 GW, to 12.6 GW, in the same time period.
The French nuclear capacity remains unchanged at 75%.
The demand was expected to drop, with Germany likely to reach 55.3 GW on Thursday, compared to 55.7 GW Wednesday, and France losing 1.1 GW to reach 43.5 GW.
EDF, a utility company, has also scrapped its plans for the "Ecocombust", project, which would have converted Cordemais' coal-fired power plant into one that burned pellet fuel made out of discarded wood. It will close it in 2027.
Separately, EDF's CEO told lawmakers that the company was optimistic that discussions on financing new reactors will conclude by the end 2024.
In Germany, the baseload power for year-ahead was 1.4% more than in France at 85.0 Euros/MWh. The French equivalent, which closed at 68.5 Euros/MWh, was not traded.
The European CO2 allowances expiring in December 2024 rose by 0.8%, to 64.36 Euros per metric ton.
Joachim Nagel, Bundesbank president, said that Germany's economy will rebound as temporary headwinds like high inflation and rates of interest fade. However, the country still needs to make major reforms, from immigration to childcare.
(source: Reuters)
