Spot prices drop on strong renewable production

German and French power prices dropped on Monday morning, as a result of the strong production from wind and solar farms in the region.

At 1030 GMT, the German baseload power day-ahead was trading at 58 Euros/MWh. LSEG data shows that this was a drop of more than 50% compared to the last traded level, 119.25 euro/MWh, on December 27.

The LSEG data shows that the French baseload power for day-ahead was 82.50 Euros per megawatt hour, compared to 119.25 Euros/MWh in December.

The LSEG analyst Naser Hachemi stated in a daily note that "the residual load (which is the amount electricity demand which cannot be met through renewable production)" will decrease tomorrow because of higher wind and solar energy supply as well as a lower demand.

Hashemi stated that "this trend is also seen in CWE (Central Western Europe), which reinforces the bearish signal."

According to LSEG, the German 2025 baseload power contract and the French year-ahead power contract were not traded.

The benchmark contract on the European carbon markets was down by 0.38 euros at 71.17 euro per metric ton. (Reporting and editing by Alison Williams; Susanna Twidale)

(source: Reuters)