Prices on wind power are increasing.

The European spot electricity prices increased on Tuesday, with the wind generation forecast to drop sharply in the next day while solar production was negligible.

LSEG analyst Francisco Gaspar Machado stated that solar production and wind power output were both below normal. He also noted that a decline in German gas availability was supporting the bullish momentum on the market.

The price of French baseload electricity for Wednesday rose 42.6%, to 103 euros ($107.20 per megawatt-hour (MWh) by 0835 GMT.

The German baseload for the day ahead was not traded, but its asking price rose to 104 euros from 60 euros on Monday at the close.

LSEG data shows that the German wind output will fall from 43 GW to 32.6 GW per day, which is still a little over half of installed capacity. In France, the output will fall from 11.9 GW to 9.2 GW.

In France, the current solar generation is around 1 GW.

The French nuclear availability increased by three percentage points, to 85%.

The data indicated that power consumption in Germany would increase by 400 MW to reach 59.4GW during the period reviewed.

The consumption in France is expected to fall by 2.1 GW per day, but remain relatively high.

The German power contract for 2026 was down by 0.4% at 71.7 euros/MWh, while the French baseload contract declined 0.4% to 91.7 euros/MWh.

The benchmark contract on the European carbon markets was up by 0.4% to 74.64 Euros per metric tonne.

Solar industry group BSW reported that Germany installed 17 GW in new solar generation capacity during the past year. It is expected to reach a threshold of 100 GW by 2025.

Data from different organisations shows that the fast-growing solar segment contributed about 15% to the total electricity generation in the country last year. Vera Eckert reports, Kirovan Donovan edits.

(source: Reuters)