Spot prices drop on increasing wind power supply

European spot prices fell on Monday for Tuesday, as a rise in wind power production across the region is expected to exceed demand increases.

LSEG data shows that the German day-ahead electricity price was 135.75 Euros ($142.29 per megawatt hour (MWh), down 9.5% on Friday's prices for Monday.

LSEG data shows that the French baseload electricity price for Tuesday is 129.50 Euros/MWh. This is a 5.8% decrease from Friday's price for Monday's delivery.

Naser Hashemi, LSEG analyst, said that residual load was down in Germany (on Tuesday) as well as France and the Netherlands.

LSEG data indicated that the German wind output is expected to increase by 5.1 gigawatts to 9.5 GW while French output will rise by 2.8 GW up to 5.8 GW.

Two reactors were taken offline, resulting in a four-point drop in the availability of French nuclear capacity to 82%.

LSEG data shows that power consumption in Germany will increase by 2 GW Tuesday to 64.9 GW while France's demand is expected to grow by 1.1 GW up to 65.3 GW.

The German power price for the year ahead was down 1.7%, at 92.90 Euros/MWh.

Analysts at Energi Danmark said that the news of a possible peace deal between Russia and Ukraine, mediated by the US, could impact European gas supplies. The market has reacted negatively to this information.

The French baseload contract for the front-year was not traded after it closed at 67.85 euro/MWh on Saturday.

The benchmark contract on the European carbon markets was down by 0.9%, at 79.02 euro per metric ton. $1 = 0.9540 Euros (Reporting and Editing by David Goodman).

(source: Reuters)