French contract for spot work is lifted by lower nuclear supply

The French spot electricity price increased on Tuesday, as the nuclear power supply dropped in France. In Germany, wind and solar energy are expected to offset an increase in demand.

LSEG data show that the French contract for day-ahead electricity was up 7.5% at 93.50 Euros ($109.13), while the German contract, which was equivalent, was not traded with a bid price of 129.50 Euros/MWh.

LSEG data indicated that the wind power output in Germany will increase by 310 megawatts, to 8.3 GW on Wednesday. In France, it is expected to rise 300 MW, to 1.7 GW.

Marcus Eriksson, LSEG analyst, says that the German baseload contract should be lower in the morning half of the day due to the reduction in residual load in Germany and the changes in hourly wind supply.

The data also showed that German solar power production is expected to increase from 2.3 GW up to 6.2 GW. International Energy Agency has cut its forecast of renewable power growth in 2030 by 248 GW compared to last year, citing weaker prospects for the United States and China.

LSEG data shows that German power consumption will rise by 1.2 GW this Wednesday to 57.8 GW. In France, demand is expected to drop by 230 GW down to 46.8 GW.

The French nuclear capacity fell by two percentage points, to 74%. This was due to the planned shutdown of Nogent 2, which lowered availability by two percentages.

The German baseload contract for the year ahead fell 0.1%, to 88.03 Euro/MWh. Meanwhile, the French contract for front-year increased 1.1% to 60 Euro.

The benchmark contract for the European carbon market 2025 was down by 0.3%, at 78.52 euro per metric ton. The German economy minister announced on Monday a 6 billion-euro funding initiative to decarbonise industry. This included the incorporation of carbon capture and storage technology (CCS) into the country's contracts for climate protection.

(source: Reuters)