French spot price drops on more wind supplies
The French spot price for power for Tuesday dropped as it was expected that wind generation would increase. However, the German bid-ask price range was higher on Monday due to a dramatic drop in wind production.
LSEG data shows that the French baseload day-ahead power price at 0946 GMT was $27.38 per megawatt hour, down 32.5% compared to Friday's closing price for Monday delivery.
Data showed that the bid-ask price range for an equivalent German price was between 89.50 and 94.75 euro. On Friday, the Monday price was 70.60 euro/MWh.
Tuesday's signals are bullish, dominated mainly by the decline in wind power supply, although French nuclear capacity is still healthy, and the German thermal system is not expected weaken. LSEG analyst Riccardo Paraviero stated.
LSEG data revealed that on the supply side of things, German wind energy output is expected to drop by 10.9 gigawatts, to 24.5 GW, while French production is projected to increase 1.6 GW, to 12 GW.
LSEG data shows that the German consumption of electricity is expected to increase by 1.1 GW Tuesday to 62.9 GW. In France, demand is forecast to rise 1 GW up to 56.2 GW.
Analysts at Engie EnergyScan say that unseasonably high temperatures will continue through the week before slowly reverting to normal seasonal levels on Thursday.
The French nuclear energy availability dropped by one percentage point, to 83%.
The German baseload contract for the year ahead was flat at 84.35 Euros/MWh.
After closing Friday at 48.40 Euros/MWh, the French year-ahead market was not traded.
The benchmark contract for the European carbon market 2025 fell 0.1%, to 81.93 euro per metric ton. $1 = 0.8584 euro (Reporting and editing by Sonia Cheema; Forrest Crellin)
(source: Reuters)
