Spot price increases on German renewables supply
The European power price rose dramatically on Thursday as Germany is expected to have a lower wind and solar production in the coming days.
By 0820 GMT the German baseload electricity for Friday had risen 5.1% to 114 euros ($126.40). The French equivalent day-ahead was up 2.65%, at 100.3 euro/MWh.
LSEG analyst Francisco Gaspar Machado stated "an increase in the residual load in Germany because of lower wind and solar production outweighing a slight lower consumption".
According to him, the availability of brown coal in the region is one of many factors that are bearish.
LSEG's forecasts indicated that the average temperature for 24 hours in both main markets was around 21-22 degrees Celsius, which is above seasonal norms.
The German wind power output is expected to drop by 2.3 GW, to 5.8 GW, on Friday. Solar generation will also fall by 2 GW, to 12.4 GW.
The French nuclear capacity remained at 72%.
Power usage forecasts reflected weak pre-weekend demand.
The consumption in Germany is expected to drop by 800 MW, to 54.7 GW. In France, it will probably remain at 45 GW on both days.
German power prices for the year ahead rose 0.1%, to 97 Euros/MWh.
After closing at 85,2 euros/MWh, the French equivalent of this contract was not traded.
The European CO2 allowances expiring in December 2024 have dropped 0.2%, to 70.62 Euros per metric ton.
According to market reports, Swiss utility Axpo has agreed to purchase 1.5 terawatt-hours per year of green power produced by German utility RWE in Poland. The agreement was signed between Axpo subsidiary Axpo Poland and RWE unit RWE Renewables Poland.
Vattenfall, a Swedish company, and Salzgitter, a German steel manufacturer have also formed a partnership that will bring 300 gigawatt-hours of offshore wind power from the North Sea to Salzgitter's plants starting in 2028.
(source: Reuters)
