German Protest on Monday is boosted by lower wind output

German power prices will likely rise on Monday due to a decline in wind power production, which is offset by a small drop in demand.

LSEG data shows that the German and French baseload power contracts for Monday were not traded by 0909 GMT Friday.

LSEG data shows that German wind power production is expected to drop by 3.7 gigawatts on Monday to 24.9 GW. Meanwhile, French wind power is expected to increase 3.5 GW from 10.9 GW.

Marcus Eriksson, LSEG analyst, predicts that the lower wind supply will cause residual load to increase in Germany on Monday.

The German solar energy supply is expected to increase by 680 Megawatts, to 2.8 GW.

On Monday, Germany's power consumption is expected to drop by 490MW to reach 62.9GW. Meanwhile, French demand will rise by 560MW to reach 63.6GW.

The German baseload contract for the year ahead was up by 0.7% to 87.6 euro ($101.33)/MWh, while its French counterpart had yet to begin trading. The French contract closed at 49.8 euro/MWh on Thursday.

The analysts at Mind Energy said that "we are currently seeing a situation in Germany where the power market is receiving mixed signals, as both the gas and carbon markets are moving in opposite directions. They even seem to be offsetting one another."

The benchmark contract on the European carbon markets rose by 0.9%, to 82.79 euro per metric ton. $1 = 0.8645 Euros (Reporting and Editing by Alexander Smith; Alban Kacher)

(source: Reuters)