French and German electricity prices will be affected by the diverging wind trends on Monday
French and German power rates are expected to diverge on Monday. Higher wind generation is expected to pressure German spot prices, while higher demand combined with lower wind supplies should lift French day-ahead contract prices.
LSEG data shows that the German and French baseload power contracts for Mondays were not traded by 8:56 GMT Friday. ,
LSEG analyst Xiulan Xiulan said that the European power market showed a bearish sign on Monday. This was mainly due to strong wind generation in Germany and Austria.
Data compiled by LSEG shows that German wind power production is expected to increase by 6.2 gigawatts on Monday, while French wind generation is projected down by 5.1 GW at 7.4 GW.
The German solar energy supply is expected to drop by 1.3 GW, to 2.7 GW.
On Monday, power consumption in Germany will rise by 430 MW, to 59.6 GW despite a 6.4C drop in temperatures. In France, demand is expected to increase by 7.3 GW, to 56 GW despite a -6.3C temperature drop.
Xiulan said that France was the only country to record a significant rise in consumption. Lower wind generation led to an increase of residual load Monday.
The price of gas in the Netherlands and Britain increased on Friday after hitting a low for 18 months. Forecasts for a sharply colder climate next week indicate that demand will increase and storage withdrawals will also increase.
The French nuclear capacity increased by six percentage points, to 82% total capacity after the Bugey 4, power plant returned from its unplanned outage.
EDF, a French company, aims to secure 10,6 TWh in extra-long-term nuclear energy contracts to be delivered starting January 2027. It will target utilities, distributors and large consumers with the intention of opening up deals to all European companies, EDF said on Thursday.
The German baseload for the year ahead TRDEBYZ6 fell 0.2% to 88.31 euro/MWh. In France, TRFRBYZ6 has not yet started trading after closing Thursday at 52.31 euro/MWh.
The benchmark contract on the European carbon CFI2Zc1 market fell 0.5%, to 80.93 Euros per metric ton.
(source: Reuters)
