Spot contracts drop on German solar's continued growth
On Friday, a rise in German solar energy supply for the second day in a row and a fall in demand in all of Europe is expected. This will further weigh on European spot electricity contracts.
French baseload electricity for Friday fell 23.1% to 64.25 Euros ($69.21 per megawatt-hour (MWh) at 1028 GMT.
The German equivalent contract was not traded.
LSEG data shows that the German wind energy output will increase by 360 megawatts to 9.8 gigawatts on Friday. In France, it is estimated to rise by 1.8 GW up to 4.7 GW.
The data shows that German solar power production will continue to increase on Friday.
The French nuclear capacity fell by two percentage points, to 74% total installed capacity, as Saint Alban 2, the reactor that went offline unplannedly, was no longer operational.
In a statement posted online, EDF stated that the Saint Alban 2 reactor was taken offline on Wednesday after the automatic activation of protection mechanisms for the turbine outside of the controlled zone.
LSEG data shows that power usage in Germany will drop by 1 GW to 55.9 GW. In France, demand is expected to increase 370 MW at 53.1 GW.
The German power contract for the year ahead rose 0.3% to 85.25 euros/MWh, while French baseload contracts 2026 fell 0.7% to 63.30 euro/MWh.
Benchmark European carbon permits dropped 0.8%, to 70.25 Euros per metric ton.
Lewis Unstead, senior carbon analyst at ICIS, predicted that the regulation cutting allocations on the European carbon markets in 2026 would result in a drop of 290 million tons in EU ETS surpluses in 2026-2027.
We don't think there will be many people selling the contract for Dec 2025 by the end this year. He said that participants would be strongly motivated to take long positions on this market.
Unstead said that they anticipate the market trading in a range of 80 to 90 euros during the fourth quarter. This is an increase from the current range of 60 to 70 euros. ($1 = 0.9283 euro) (Reporting and editing by Shailesh Kumar)
(source: Reuters)
