German Forward Contract Dips with Lower Carbon Permits
German power contracts for the year ahead fell on Friday as a result of further falls in carbon prices and lower gas prices.
German baseload?year-ahead lost 0.4% at 82.20 Euro ($96.96 per megawatt hour) by?1000 GMT. This was due to falling carbon permits and lower gas costs.
The French equivalent of the?French equivalent?was untraded at a price of 48.70 Euros.
The benchmark carbon contract on the European market fell by 0.6%, to 77.74 euro per metric ton.
Engie's EnergyScan analyst said that the carbon contract was dropped on Thursday afternoon as the plans of the EC were revealed to overhaul the?free-allocation system of the EUETS. The EC's plans to revamp the?free allocation system of the EU-ETS were made public on Thursday afternoon, according to Engie's EnergyScan analysts.
The spot market for German and French baseload day-ahead contracts for Monday had not yet begun trading. On Monday, wind?power was falling in the entire region, while demand is expected to increase.
Marcus Eriksson, LSEG analyst, said that Monday's residual load was lower due to a weaker wind supply compared with Friday. LSEG predicted the German spot price to range between 129 and 144,8 euros/MWh.
LSEG data shows that German?wind energy generation is expected to drop by 3.5 Gigawatts on Monday, while French output is projected to drop by 4.4 GW and 5.2 GW.
LSEG analysis revealed?that the wind speed will fall below 10 GW by next Tuesday, before rebounding near?20 GW for the remainder of the week. It will reach a 'peak of 26 GW Thursday.
LSEG data revealed that power demand in Germany was expected to drop by 860 megawatts on Monday to 65.5?GW, while French demand increased 1.9 GW to 61.3 GW due to the average temperatures falling 2.6 degrees Celsius in France.
(source: Reuters)
