Spot prices rise due to low renewables production and increasing demand
European spot electricity prices rose to multi-month highs Monday. Renewables are expected to continue to be low, while demand is projected to increase.
By 0901 GMT, the German baseload contract for Tuesday had reached its highest level since June 25, at 145 Euros ($157.99 per megawatt-hour (MWh). On Friday, during the All Saints Holiday, no equivalent price was traded.
LSEG data shows that the equivalent French contract is now at 117.50 Euro/MWh, after having reached a contract high of 117.50 Euros for 11 months.
Naser Hashemi, LSEG analyst, says that Germany will be a net exporter on Tuesday due to a large average residual load.
LSEG data revealed that the German wind output is expected to increase by 190 megawatts to 4.4 gigawatts on Tuesday, while French output will fall by 1.2 GW and 830 MW.
The German solar energy supply is expected to increase by 310 MW, to 5.1 GW.
The French nuclear capacity has increased by one percentage point, to 79%.
The data revealed that the German demand for power was expected to increase by 1 GW on Tuesday to 58.2GW while French demand is projected to rise by 390MW to 51.1GW.
The German power price for the year ahead was 1.9% higher at 86.10 Euros/MWh, while Cal '25 in France increased by 2.5% to reach 70.75 Euros/MWh.
The price of European CO2 allowances that expire in December 2024 rose by 1.1%, to 64.57 euro per metric ton. $1 = 0.9178 Euros (Reporting and Editing by David Goodman).
(source: Reuters)
