Spot prices are mixed as German winds set to fall
On Tuesday, the European spot electricity prices for Wednesday were mixed as it was expected that wind power production would fall in Germany but increase in France.
German power for the day ahead increased by 0.9% at 0930 GMT to 137.75 Euros per Megawatt Hour.
LSEG data shows that the French baseload rate for the day was 104 euros/MWh down 1.4%.
Marcus Eriksson, LSEG analyst, says that residual load in Germany is on the rise due to a weaker renewable energy supply. However, it has decreased in general in the area.
LSEG data revealed that on the supply side Germany expected wind output to drop by 2.4 gigawatts to 9.1 GW, while French output was predicted to increase 1.6 GW from 9.2 GW per day.
In a 2024 financial presentation, Uniper's head said that the new German government must encourage quick investments in gas-to power plants and market design changes.
Uniper has also released its forward-hedging rates up to 2027 for its hydroelectric and nuclear power generation.
The French nuclear capacity remained unchanged at 79%.
LSEG data shows that power consumption in Germany will decrease by 470 MW on Wednesday to 61.1 GW, but demand in France will rise 1.7 GW up to 58 GW. This is because temperatures are expected to drop 1.6 degrees Celsius in France to 7.8C.
The German baseload contract for the year ahead was down by 0.2%, at 87.8 Euros/MWh. However, the French position increased 0.5% to reach 64.75 Euros/MWh.
Analysts at Energi Danmark said that if gas prices continue to fall, as they are expected to, the German electricity market could see further price reductions.
The benchmark contract for 2025 on the European carbon market was down 0.5%, at 73.31 euro per metric ton. (Reporting and editing by Kim Coghill; Additional reporting by Vera Eckert, Additional reporting by Forrest Crellin)
(source: Reuters)
