French spot electricity prices rise on windpower decline

On Thursday, the French spot electricity contract was higher for Friday due to lower wind power production in the region.

By 0836 GMT, the French baseload day-ahead contract was up by 34.4% to 77 euros per megawatt hour (MWh). The German equivalent contract, which closed at 77.25 euro/MWh last Wednesday, was not traded.

Analysts at Engie’s Energy Scan said that after a period in which spot prices were very low due to factors such as strong wind output and higher hydro, they are now strengthening and expect them to continue to rise, especially with the increase of exports.

LSEG data revealed that German wind power production was expected to decline by 9.3 gigawatts (GW) to 22.6 GW, while French wind output was projected to decrease by 2.6 GW (MW) to 970 Megawatts.

LSEG analysis shows that German wind energy supply is expected drop to 12 GW on Monday and gradually increase through the week to peak at 18 GW on Saturday.

According to LSEG analyst Naser Hachemi, residual load in Germany is rising on Friday, mainly because of lower wind production. Germany will be a net importer for the entire day.

The French nuclear capacity remained unchanged at 79%.

LSEG data revealed that the power demand in Germany is expected to drop by 470 MW to 54.9 GW on Friday, while French consumption will be down by 140 Megawatts to 46,5 GW.

The German baseload for the year ahead was not traded with a range of bid-ask between 86.50 and 86.80 euro. French 2026 baseload also remained untraded with a bid/ask between 56.85 and 57.80 euro.

Benchmark European carbon permits increased 0.2%, to 76.19 Euros per metric ton.

By 2025, the power companies in Turkey will have polluted more than any other nation in Europe, surpassing Germany. (Reporting and editing by Joe Bavier; Forrest Crellin)

(source: Reuters)