Prices rise due to increased demand and less green power
The combination of a lower renewable energy supply in North-West Europe and a rising demand has led to a rise in electricity wholesale prices.
By 0730 GMT on Thursday, the German baseload electricity for that day was up 14.1% to 109 euros ($121.61) a megawatt-hour (MWh), while its French equivalent was up by 9.8% to 95 euros/MWh.
LSEG analyst Francisco Gaspar Machado observed an "increased residual load in Germany because of lower wind output, increased consumption and lower solar input".
The hot weather of late summer has increased cooling demand.
LSEG's forecasts indicated that the average temperature for 24 hours was around 23-24 degrees Celsius. This is above normal seasonal temperatures.
LSEG data revealed that power consumption in Germany is expected to increase to 55.2 gigawatts on Thursday, from 54.6 GW. In France, usage should rise by 700 MW and reach 44.7 GW.
Solar power generation in Germany should drop by 700 MW, bringing it down to 14.1 GW.
The French nuclear capacity remained at 72%.
German power for the year ahead was not traded along the curve after closing at 97.7 euro/MWh.
The French equivalent of the contract was also not traded after it closed at 84.3 Euros/MWh with bids at 85 euros.
The European CO2 allowances expiring in December 2024 increased by 0.7%, to 71.96 Euros per metric ton.
On Tuesday, the Oslo-based Nord Pool Exchange announced that it would launch Nordic and Baltic Power Derivatives in March 2019.
The German competitor, the European Energy Exchange, and its subsidiary EPEX SPOT will expand their Future-to Spot service to the twelve Nordic power markets areas starting in October, according to separate statements.
Nasdaq is the largest financial trading exchange in Scandinavia.
(source: Reuters)
