Spot prices are at a multi-month high on a drop in supply and rising demand
European spot electricity prices reached multi-month highs Monday, driven by a decline in regional wind power and an expected increase in demand.
By 8:10 AM GMT, the price of German baseload electricity for Tuesday had risen by 24.8% compared to Friday's price for Monday's delivery. The contract reached its highest level since June 25, at 133.75 euro.
LSEG data revealed that the equivalent French contract had reached 109 euros/MWh. This was a new contract high, not seen since January 9. On Friday, the Monday price had not been traded.
According to LSEG analyst Francisco Gaspar Machado, Germany, France and Belgium will see an increase in residual load due to lower wind energy generation and higher consumption predictions.
LSEG data indicated that the German wind output is expected to decline by 5 gigawatts to 5.7 GW on Tuesday, while French output will drop by 470 Megawatts to 1.7 GW.
The data revealed that the German solar energy supply is expected to increase by 280 MW, to 13.1 GW.
LSEG data shows that power from German windmills will remain at Tuesday's levels on Wednesday, and then rebound and reach almost 12 GW by Thursday and nearly 19 GW by Friday.
The French nuclear capacity fell by one percent to 71% after the Tricastin 3 reactor was shut down for an unplanned shutdown over the weekend.
EDF, the operator, said that the Tricastin reactor, which was being tested on Friday and Saturday, had a fault in the non-nuclear portion of the installation. The reactor was then decoupled.
The data indicated that power consumption in Germany is expected to increase by 2.2GW on Tuesday to 56.3GW and in France by 1.4GW to 45GW.
The German power for the year ahead was down by 0.8% to 95.75 Euros/MWh, while its French counterpart, Cal '25 was not traded after it closed on Friday at 83.60 Euros/MWh.
European CO2 allowances expiring in December 2024 fell 0.8%, to 69.72 Euros per metric ton. Reporting by Forrest C. Crellin, Editing by David Goodman
(source: Reuters)
