Spot prices dip on more solar power, lower demand
European prompt electricity prices fell on Thursday, as a combination of a growing solar supply and lowered demand was expected to offset a decline in wind supply.
As of 1018 GMT, the German baseload electricity for Friday fell 4.4% to 147.75 Euro per Megawatt Hour (MWh).
The French baseload for the day ahead was down by 0.9% to 140.75 Euros.
LSEG data shows that the German wind output will fall by 1.9 gigawatts to 8.7 GW this Friday. In France, it is predicted to drop 2.8 GW down to 1 GW.
The data revealed that solar power in Germany will increase by 1.3 GW and reach 3.8 GW.
Marcus Eriksson, LSEG analyst, said that residual load in Germany will likely slip on Friday.
The French nuclear capacity is flat at 92%.
Fatih Birol, the International Energy Agency's (IEA) chief, said that there is interest in investing in nuclear energy in Europe, but governments must lower risks through contract guarantees and reduced regulation.
LSEG data shows that power usage in Germany will drop by 1.2 GW this Friday to 64.5 GW. French demand is expected to be 1.4 GW greater at 75.5 GW.
Verivox, an internet portal, said that the average cost of German retail electricity fell by 4% in 2017. This would translate to 0.36 euros/kWh if a family bought 4,000 KWh per year. The first indications of the new year show a 0.3% increase.
The German power contract for the year ahead fell 1.4% to 93 euros/MWh, while French baseload contracts 2026 rose 0.1% to 69.85 euro/MWh.
Benchmark European carbon permits dropped 0.1%, to 77.90 Euros per metric ton.
Ingvild Sörhus, Veyt analyst, reported that European carbon contracts reached a seven-month peak on Wednesday, as investment funds increased their bullish positions, backed by high gas prices, slow wind speeds, and cold weather. (Reporting and additional reporting by Vera Eckert, editing by)
(source: Reuters)
