Wind supply is down, which has led to a rise in spot prices
The European power price for Thursday increased as the German wind forecast was to be reduced to half its Wednesday levels.
At 0828 GMT, the price of German baseload electricity for Thursday had risen by 31.9% to 114 euros ($125.86).
The French power day-ahead rose 39.1%, to 73 Euro/MWh.
LSEG data indicated that the German wind power production is expected Thursday to drop 13.8 gigawatts to 6.9 GW. The French wind power is expected on Friday to fall 3.3 GW and 4.6 GW.
According to data, solar power in Germany has increased from 3.2 GW up to 9.6GW.
"Thursday's signal is decisively positive, driven primarily by the plummeting winds." Riccardo Paraviero, LSEG analyst, said that Germany will likely turn to imports given the current fundamental situation.
He added that the residual load in the entire region is much higher, but French nuclear capacity is increasing to meet this need.
The French nuclear capacity has increased by two percentage points, to 71%.
LSEG data shows that power consumption in Germany will drop by 290 megawatts to 55.9 GW while in France, demand is expected to fall by 180 MW to 44.2 GW.
The German power contract for 2025 has dropped by 2.1%, to 73.90 Euros/MWh.
The European CO2 allowances in December 2024 increased by 1%, to 65.55 Euros per metric ton.
Henry Lush, Veyt analyst, says that the correlation between carbon and gas prices has been inconsistent over the last few weeks. However, with the small gap between the fuel switching price and the current carbon allowance price, carbon is likely to follow the lead of gas.
(source: Reuters)
