Spot prices fall on forecast of strong wind supply
The European spot electricity prices fell on Wednesday as the wind supply is expected to increase throughout the region and demand to fall in France due to warmer temperatures.
LSEG data show that the German baseload day-ahead power dropped 38.2% at 0923 GMT to 57.75 Euros per Megawatt Hour (MWh).
LSEG data shows that the equivalent French contract is down by 40.5%, at 59.5 Euro/MWh.
According to LSEG analyst Francisco Gaspar Machado, the outlook for Wednesday is negative due to an increased supply of wind power in Germany. The country will be a net importer in the morning.
LSEG data shows that the German wind energy output will increase by 9.7 gigawatts to 39.7 GW. The French supply should rise by 8 GW up to 11.7 GW.
The French nuclear capacity remained unchanged at 88%.
LSEG data shows that power consumption in Germany will increase by 1 GW, to 62.2 GW, on Wednesday. In France, demand is expected to drop 4.3 GW, to 62.3 GW, as temperatures are forecast to rise 3.4°C to 9.9C.
The German power contract for the year ahead was up by 0.1%, at 86.50 Euros/MWh. In France, 2025 baseload contracts had a range of bid-ask between 66.50 to 71 Euros/MWh.
The European CO2 allowances in December 2024 remained flat at 65.27 Euros per metric tonne.
Henry Lush, Veyt analyst, says that the mild and windy weather will have a negative impact on both gas markets and carbon markets in the coming week. (Reporting and editing by Mohammed Safi Shamsi; Forrest Crellin)
(source: Reuters)
