Spot prices plunge on rising wind supply, lower demand

The European power price dropped by a quarter on Thursday, due to a combination of increased wind production and reduced demand as compared to the previous week.

As of 1006 GMT, the German baseload for Friday had fallen by 24.6% to 83 euros per Megawatt Hour (MWh). French baseload power for the day ahead was down 35.1% to 78 euros.

Riccardo Paraviero, LSEG analyst, says that wind power supply continues to increase in Germany and throughout the region. This indicates a negative outlook for Friday.

LSEG data shows that the German wind output will increase by 4.8 gigawatts to 38.0 GW this Friday. In France, it is forecast to increase by 4.9 GW up to 13.1 GW.

The data revealed that solar power in Germany will increase by 800 megawatts to 2.4 GW. The French nuclear capacity was unchanged at 92%.

LSEG data shows that power usage in France will drop by 4.1 GW to 62.9 GW, as temperatures are expected to increase 2.1 degrees Celsius in France to 8.5 C.

LSEG data revealed that German demand is expected to be 1.7 GW less at 62.7 GW with average temperatures forecasted to rise 2.3 C upto 5.2 C.

Amprion's chief executive said that by 2029, Germany's grid operators would need a higher return on their capital to attract investors and fund grid expansion.

The German power contract for the year ahead TRDEBYZ6 rose 1.6% to 94.5 euros/MWh, while French baseload 2026 contracts gained 1.3% at 68.65 euro/MWh.

Benchmark European carbon permits increased by 3.1%, to 81.4 Euros per metric ton. (Reporting and Editing by Frances Kerry.)

(source: Reuters)