French spot prices rise as solar supplies drop
The price of French baseload day-ahead power rose on Thursday. This was due to forecasts that solar generation would decline, which outweighed the effect of lower demand and increased wind and thermal supply in the region.
By 8:10 GMT, the French baseload contract for Friday had risen 10.5% to 58 euros ($67.75). The German equivalent day-ahead contract remained untraded at 75.20 euro/MWh.
LSEG data revealed that the solar power generation in Germany will likely drop from 18.8 GW to 17.3 GW per day. In France, the solar power generation is expected to drop to 5.8 GW compared to 6.0 GW.
The French nuclear availability was at 76% of the installed capacity.
The usage predictions for Friday were lower than expected due to the low demand before the weekend. Germany was forecast to lose 1.2 GW per day, reaching 50.0 GW. France's consumption was predicted to drop by 400 MW at 40.4 GW.
The weather charts showed that temperatures in Germany would return to 30 degrees Celsius or higher by the weekend.
The summer heat can increase the demand for air conditioners, while production volumes at plants that rely on river water with relatively low temperatures may drop.
The German baseload for the year ahead fell 0.7%, to 86.10 Euros/MWh. In France, it was between 61.8 and 62 Euros after closing at 62.30.
The German cabinet approved on Wednesday draft bills that would eliminate a levy on gas storage for consumers and accelerate the development of CO2 Capture and Storage (CCS).
At a Berlin press conference, the Economy Minister warned of the risks associated with non-participation to offshore wind tenders.
German utility Uniper announced on Thursday it would invest 5 billion Euros through 2030. This will be primarily on gas-fired and renewable power plants.
(source: Reuters)
