Demand is expected to drop on Monday as German wind power surges
As the holiday season in August begins, regional power demand will drop. Meanwhile, German wind energy is expected nearly double.
LSEG data shows that the German and French Monday basis power contracts were not traded by 1001 GMT.
On Thursday, the baseload prices were 99 euros/MWh for Friday and 63.50 euro/MWh on Friday.
Engie EnergyScan analysts said that temperatures are below average and cooling demand is low.
They added that the forecasts for next week are slightly warmer, with temperatures rising by mid-week. Sunnier weather is also expected, which could push prices down during peak solar hours.
LSEG data indicated that the German wind output is expected to increase by 8.1 GW this Monday to reach 16.5 GW. Meanwhile, French wind production was projected to grow 220 megawatts to 3.9 GW.
LSEG data shows that the German solar energy supply is expected to range from 1 GW up to 11,4 GW.
Wood Mackenzie's research showed that the natural phenomenon "dunkelflaute", which is a prolonged period of low solar and wind generation, such as what occurred in winter of last year, will recur across Europe.
The report stated that market consequences can range from extreme price changes to dramatic changes in the mix of power supply.
The report said that European markets will be exposed to an average of 1.6 events per year, with Belguim experiencing the most events, three apiece, and Portugal expecting to see none.
The data shows that power consumption in Germany will fall by 1.9 GW Monday to 50 GW. In France, demand is expected to drop by 1 GW to 40.8 GW.
The French nuclear capacity fell by two percentage points, to 76%. This was due to a planned reactor maintenance.
The German power contract for the year ahead fell by 0.7%, to 88.20 euro ($100.58), while France's baseload contract for 2026 dropped 1.3%, to 63 euros/MWh.
The benchmark contract on the European carbon markets fell 1.3%, to 71.73 euro per metric ton. $1 = 0.8769 euros (Reporting and editing by Clarence Fernandez; Forrest Crellin)
(source: Reuters)
