As wind power declines, prompt prices are rising sharply
The strong anticipated loss in wind power supply has boosted European spot electricity prices on Tuesday. This overrides the effects of weaker demand before holidays later this week.
LSEG's research showed that Germany would rely on imports in the near future and that thermal production was not changing much.
LSEG data shows that the price of French baseload electricity for Wednesday at 0725 GMT was 41 euros ($46.51), an increase of 134.3%.
The German baseload day-ahead bid was 86 Euros/MWh after closing at 66.5 Euros.
The wind generation in Germany and France is expected to drop by more than half from Tuesday's output of 21.6 GW in Germany, and from 8.5 GW in France on Wednesday.
The French nuclear capacity was 72%, down from 74% in Monday's data.
In Germany, the demand for power is expected to drop by 5.6 GW this Wednesday to 49.6GW and in France it will fall by 2.2 GW to 42.9GW during that same time period.
In the first half, low-pressure fronts dominate the region. This brings rainy weather and cooler temperatures given the season.
The German Met Office DWD stated that temperatures could reach 25 degrees on Wednesday and/or Thursday, but the outlook for Easter, which spans four days from April 18-21, is still uncertain.
The German baseload year-ahead price fell 0.6% to 82.0 Euros/MWh. In contrast, the French equivalent was not traded at its previous level of 62.2 Euros.
The benchmark contract on the European carbon markets fell 0.3% to 66.31 Euros per metric ton.
After twice delaying its plan, the European Commission announced on Monday that it will unveil a more comprehensive strategy for phasing out Russian oil imports. $1 = 0.8816 Euros (Reporting and editing by Eileen Soreng, Vera Eckert)
(source: Reuters)
