Spot prices drop on higher expected wind generation

The European power prices for the next day were lower than on Monday, as a result of a slight decline in wind energy supply. This was partially offset by an increase in electricity demand.

LSEG data shows that the price of German baseload electricity for Tuesday at 0933 GMT was 169.75 Euros per Megawatt Hour (MWh), down 2% compared to Friday's Monday price.

The French day-ahead electricity was at 156.25 Euros/MWh. On Friday, the Monday contract was not traded.

Marcus Eriksson, LSEG analyst, says that residual load will be decreasing in Germany on Tuesday.

LSEG data indicated that the German wind power production was expected by 3.8 gigawatts to reach 8.6 GW on Tuesday, while French output is expected to increase by 2.4 GW up to 4.2 GW.

The French nuclear capacity remained unchanged at 92%.

LSEG data shows that power consumption in Germany will increase by 1.3 GW Tuesday to 64.5 GW while France's demand is forecast to remain flat at 71.9 GW.

The German power contract for the year ahead was up 0.6% to 94.45 Euros/MWh, while the French baseload contract for 2026 was not traded after it closed at 70.60 Euros/MWh last Friday.

The t-online newspaper reported that the German opposition leader Friedrich Merz has pledged to build 50 gas fired power plants should his conservatives win a snap election on February 23.

The benchmark contract on the European carbon markets was down by 0.3%, at 78.93 Euros per metric ton.

Speculative investors and bullish coal have driven up the European carbon market, but analysts at Energi Danmark wonder when they will begin to close their positions in order to make a profit. Reporting by Forrest Créllin Editing David Goodman

(source: Reuters)