German and French spot price diverge
On Tuesday, wholesale prompt power prices on Europe's major markets diverged with Germany down and France up.
"The signal is negative for Germany." In a note about the day to come, LSEG analyst Xiulan said that wind supply would show a constant upward trend throughout the day. He also predicted a fall in French generation.
By 0750 GMT, the German equivalent of baseload power had fallen 22% to €85.50 ($100.84), while its French counterpart had risen 191% to €43/MWh.
LSEG data shows that German wind energy generation is expected to double on Wednesday to 26.4 gigawatts from 12.5 GW, compared to Tuesday.
The availability of French nuclear power decreased by two percentage points overnight to 77%.
On the demand front, Germany's power consumption is expected to rise by 600MW on Wednesday to 55.2GW while France is forecast to see a 600MW increase to 47.1GW.
The temperatures have dropped sharply in recent weeks, to levels below seasonal averages. However, next week they are expected to rise again by 1-2 degrees Celsius.
LSEG data revealed that the German baseload contract for the year ahead was almost unchanged at 86.50 Euros/MWh, while in France there was no trading after a previous settlement of 57.80 Euros.
The benchmark contract on the European carbon markets fell 0.2%, to 76.06 Euros per metric ton.
Analysts from carbon consultancy Veyt stated that the technical outlook was cautiously optimistic, citing a few additional fossil fuel generators in the mix of power generation among other factors.
LSEG has noted an improvement in thermal availability for lignite gas and liquefied natural gas.
(source: Reuters)
