The spot prices of French nuclear and renewable energy are falling sharply

European power prices dropped sharply on Monday as France's nuclear fleet saw its capacity increase by six percentage points and due to expectations that wind and solar energy generation in the region would be higher.

Marcus Eriksson of LSEG, an analyst at the company, said that the primary factor for a bearish outlook in the near future is the lower residual load in Germany due to a higher renewable supply.

He did note, however, that brown coal and natural gas are becoming less available.

By 0745 GMT on Wednesday, the German baseload electricity for delivery had fallen by 35.7% to 56.3 Euros ($62.36 per megawatt-hour (MWh).

The French equivalent day-ahead contract is now at 43.5 Euros/MWh (down 29.0%).

LSEG data indicated that the German wind energy output is expected to double in the next day, with a likely increase of 13.8 gigawatts.

In both Germany and France, the solar power output has been increasing day by day.

The French nuclear capacity was 73% installed, up from the 67 GW of Monday.

The forecasts for power usage showed a stable overall picture.

On Wednesday, consumption in Germany is expected to be down 400 MW at 53.2 GW and in France, it will rise 400 MW at 40.5 GW.

The curve shows that the German baseload power contract for the year ahead was unchanged at 100.1 euros/MWh, while the French contract Cal '25 increased by 0.3% to reach 86.0 euros/MWh.

The price of European CO2 permits for December 2024 expired increased 0.4%, to 73.41 euro per metric ton.

The Federal Statistics Office reported that German producer prices fell by 0.8% in July compared to the same period last year. Reporting by Vera Eckert, Editing by Shonak Dasgupta.

(source: Reuters)