Spot prices are affected by higher wind forecasts

European prompt electricity prices fell on Friday, as wind power supplies are expected to increase in Germany while demand is forecast to decline.

LSEG data revealed that the German baseload electricity contract for Friday had fallen 39.1% to 195 euros ($204.96 per megawatt-hour (MWh). The French equivalent contract fell 2.3% to 17 euros/MWh.

LSEG data indicated that the German wind power production was expected to increase by 3.1 gigawatts to 5.7 GW, while French output is projected to drop 370 megawatts to 560 MW.

Data showed that the German solar market was expected to grow by 780 MW on Friday to 3 GW.

The French nuclear capacity remained unchanged at 85%.

The data revealed that power consumption in Germany is expected to drop 1.3 GW this Friday to 62.6GW while France's demand is forecast to rise 1.1 GW up to 69.4GW.

Marcus Eriksson, LSEG analyst, forecasts that the residual load in Germany will decrease on Friday. Imports into Germany are expected to drop after the first off peak hours.

The German power for the year ahead was down by 1% to 93.10 Euros/MWh. Meanwhile, French baseload 2025 was down by 0.5% to 73.30 Euros/MWh.

The European CO2 allowances in December 2024 fell by 1.1% to 67.89 Euros per metric ton.

Analysts at Energi Danmark say that as the end of the calendar year nears and the German contract for 2025 is about to be delivered, the prices are falling quickly, because a very cold winter does not appear imminent. ($1 = 0.9514 euro) (Reporting and editing by Susan Fenton; Forrest Crellin)

(source: Reuters)