French spot prices rise as renewables supply declines
The price of French prompt electricity rose dramatically on Thursday, following predictions that renewable energy generation would be reduced.
Naser Hashemi, LSEG analyst, said: "A relatively large decline in wind and solar power has offset the slight decrease in consumption. This results in a bullish outlook for prices." Around 0803 GMT, the French day-ahead power TRFRBD1 jumped 56.9% up to 57.25 euro ($67.02 per megawatt hour). The German equivalent baseload contract TRDEBD1 for Friday delivery had not yet traded.
LSEG data indicated that the German wind generation is expected to drop by 7.5 gigawatts from Thursday's 17.2 GW. Meanwhile, France's output of wind energy will fall from 5.6 GW to 2.6 GW.
In Germany, solar power production is expected to drop by 4.4 GW and reach 9.1 GW. According to data from the company, EDF's electricity production was reduced by 2.7 gigawatts in France on Wednesday as workers cut back production during a strike for pensions and wages. The French nuclear capacity increased by one percentage point, to 77%. POWER/FR
Global Energy Monitor, in a Thursday report, said that renewables played a larger role in decarbonising Europe than nuclear energy due to the sector's aging infrastructure, longer construction timelines and increasing costs.
The report stated that renewable deployment is continuing at a scale of over 600 GW in Europe. This is more than 14 times the amount of nuclear power, which is primarily intended to replace retiring reactors.
In France, the power demand is expected to remain stable. Germany's power demand will be down by 550 megawatts. German baseload TRDEBYZ6 increased 0.4%, to 86.25 euro/MWh. The French 2026 baseload, TRFRBYZ6, had not yet begun trading after closing on Wednesday at 60 euros/MWh. Benchmark European carbon permits CFI2Zc1 fell 0.2% to 74.81 euro per metric ton.
(source: Reuters)
