Spot contracts are pushed up by a combination of lower wind output and increased demand

The German spot electricity market was bullish on Tuesday, as renewable energy supply was expected to decrease throughout the region and demand to increase.

LSEG data shows that the German baseload electricity for Tuesday at 0850 GMT was 103.75 Euros ($114.10)/MWh. The French power of the day was 68 Euros/MWh.

The closing prices on Monday were 97.25 and 45.50 respectively. Both contracts were traded on Friday, but for delivery Monday.

Natalia Kubaszek, LSEG analyst, says that the rising demand on Tuesday coupled with falling wind and solar supplies underpins a bullish signal. This also contributes to a significant rise in residual load.

LSEG data indicated that the German wind output is expected to decline by 4.7 gigawatts to 2.9 GW while French output will drop by 1.6 GW up to 2.5 GW.

A report released by the Institute for Energy Economics and Financial Analysis on Monday warned that France could have only 3 GW installed offshore wind capacity in 2032 due to licensing challenges, legal issues and local opposition.

LSEG data indicated that the German solar generation is expected to drop by 1.4 GW to 13 GW on February 2.

On Tuesday, power consumption in Germany will increase by 2 GW and reach 55.8 GW. In France, demand is expected to increase by 1.5 GW at 48.2 GW.

The French nuclear capacity has increased by one percentage point, to 71%.

The German baseload power for the year ahead fell by 2.1%, to 77.75 Euros/MWh. In comparison, the French equivalent dropped 2.5%, to 59.65 Euros/MWh.

The benchmark contract on the European carbon markets was down 4.8%, at 60.78 euro per metric ton. $1 = 0.9093 Euros (Reporting and Editing by David Goodman).

(source: Reuters)