Wind power production increases impact on spot prices
The European wholesale electricity prices dropped on Tuesday, as forecasts showed a doubled wind power generation capacity in Germany. Demand in the region was not affected by this change.
The daily report by LSEG analyst Francisco Gaspar Machado predicted more renewables, but less gas, lignite and nuclear capacity. The hard coal capacity was on the rise.
German baseload electricity for Tuesday, at 0755 GMT was 81.0 euros per megawatt-hour (MWh), down 17.1%.
The French equivalent contract was 48.0 euros/MWh down 5.9%.
LSEG data revealed that the German wind power output is expected to increase by 600 MW, to 21.9 gigawatts, on Wednesday, compared to 11.7 GW Tuesday. The French wind power output will also grow to 6.8 GW during this period.
The German solar energy supply is expected to increase by 1.4 GW, to 8.3 GW.
The French nuclear capacity remains unchanged at 75%.
On the demand-side, it was anticipated that power consumption in Germany would decline by 100 MW to 55.7 GW on Wednesday and increase by 300 MW to 44.6 GW in France.
The curve shows that the year-ahead power in Germany was down by 0.1% at 84.3 Euros/MWh. The French equivalent, at 68.5 Euros/MWh, was up 0.4%.
The European CO2 allowances expiring in December 2024 rose by 0.1%, to 64.18 Euros per metric ton.
The price of oil rose after news that China, the world's largest importer, was introducing monetary stimulus. There were also concerns about tensions in the Middle East and their impact on regional supply. Meanwhile, a major hurricane threatened the United States.
The hopes for a manufacturing recovery in Germany have seemed to be dashed, and Tuesday's macroeconomic data are expected to indicate a recession. $1 = 0.8986 Euros (Reporting and editing by David Evans).
(source: Reuters)
