French suppliers tighten up on German demand for higher wind speeds
On Tuesday, the European spot electricity market showed a mixed picture. Germany's supply was boosted by increased wind power production, but French nuclear and renewables were tighter.
LSEG analyst Florine Engl observed that decreasing demand in the region was a bearish factor, while on the other side, the lower supply of solar and lignite were bullish factors influencing market.
By 0740 GMT on Wednesday, the German baseload electricity was down 23% to 71.0 Euros ($80.00) per Megawatt Hour (MWh).
The French equivalent contract, which closed at 24.80 euros/MWh, was not traded but showed a higher price.
The German wind energy output is expected to triple in a single day to 21.1 gigawatts from 6.2 GW.
The French nuclear capacity has fallen by four percentage points, to 61%.
Demand in Germany is expected to remain unchanged at 52.3 GW for the period in question, while consumption in France will likely increase by 900 MW on Wednesday, reaching 43.1 GW.
LSEG data shows that temperatures are currently below the seasonal averages, but will recover in the coming days and rise again next week.
The curve did not show any change in the price of German baseload power for the year ahead, but it was shown higher following a settlement rate of 86.9 Euros/MWh.
The French equivalent rose 0.8% to just below 58.0 Euros.
The benchmark contract on the European carbon markets increased by 0.4%, to 70.69 Euros per metric ton.
Analysts at Veyt said that the prospect of a significantly reduced auction supply may help to support prices this week.
French officials confirmed a report that the new German government had signalled to France that it would no longer object to the EU treating nuclear energy on an equal footing with renewable energies. ($1 = 0.8875 euro) (Reporting and editing by Vera Eckert)
(source: Reuters)
