Demand for renewables is increasing, but supply is rising faster.

On Monday, the French baseload day-ahead power price for Tuesday was lower than it had been the previous week. This is due to the fact that the supply of wind and solar energy in the region will likely offset the demand on Tuesday.

LSEG data shows that the French baseload electricity contract for Tuesday had reached 20 euros (23.13 dollars) per megawatt-hour (MWh) at 0953 GMT, while the German equivalent contract had not been traded.

The Friday contracts for both Monday contracts were not traded. Last Monday, the French contract was closed at 43.75 Euros/MWh.

Florine Enengl, LSEG analyst, says that forecasts show that most imports are to Germany.

LSEG data indicated that the German wind power production was expected to increase by 3.7 gigawatts to 24.3 GW while French output is projected to grow by 1.9 GW up to 5.3 GW.

The data indicated that the German solar generation is expected to increase by 620 Megawatts (MW) to 12.1 GW on Tuesday.

The French nuclear capacity is flat at 76%.

EDF, the operator of France's Flamanville 3 reactor, said that it is experiencing further delays in maintenance and will not be able to restore production until October 1. Full power is not expected until mid December.

On Tuesday, power consumption in Germany will rise by 1.8 GW and reach 51.1 GW. In France, demand is expected to increase by 1.2 GW at 41.6 GW.

LSEG data revealed that the German baseload power for the year ahead fell by 0.8%, to 86.40 Euros/MWh. The French equivalent dropped 1.7%, to 61.65 Euros/MWh.

The benchmark carbon contract in Europe fell 1.2%, to 70.22 euro per ton. $1 = 0.8645 Euros (Reporting and Editing by David Goodman).

(source: Reuters)