French price increases prompt but strike has little impact
The wholesale European power prices increased on Thursday, as a result of a strike in France that removed some nuclear power from the market. However, a decrease in German wind energy generation was more significant.
The signal for Germany is positive. In a day-ahead outlook, LSEG analyst Xiulan He noted that wind supply was on the decline, with its lowest point occurring around hour 17. He also mentioned other expectations for decreased coal and gas availability.
The data from EDF, a French utility, showed that nuclear production fell by 1.1 gigawatts (GW) due to workers' reduced output. However the nominal capacity availability was still at 75%.
The Dunkirk Gas Import Terminal in Northern France was also involved in the protests, which were a part of unions' protests against economic reforms, budget cuts and planned economic reforms. However, the impact of the action was limited.
According to LSEG prices, the price of French baseload electricity for Friday delivery was up 21.7% at 59 euros ($69.82 per megawatt-hour (MWh) by 0745 GMT.
The German baseload day-ahead was not traded, after closing at 68.39 Euros/MWh.
LSEG data shows that the German wind power production is expected to drop by 11.3 GW per day to 16.9 GW at Friday.
The data showed that more solar power production would be on the way, and this should help to offset the losses in wind energy generation. Together, France and Germany are expected to add 5.1 GW solar power on Friday.
In the same time period, the power demand in Germany and France is expected to decline by 1.3 GW each to 53.8 GW.
The curve shows that the German baseload power for the year ahead increased by 0.2%, to 87.4 Euros/MWh. Meanwhile, the French equivalent rose 0.3%, to 59.7 Euros.
The benchmark contract on the European carbon markets gained 0.8%, to 77.62 euro per metric ton. $1 = 0.8450 Euros (Reporting and Editing by Frances Kerry, Additional Reporting by Forrest Krellin)
(source: Reuters)
