German spot bids lower due to renewable gains. France pauses
German power prices fell early on Tuesday due to a rising renewable supply in the region. Meanwhile, France observed its Armistice Day, which curtailed trading activity.
At 0840 GMT, the German baseload day-ahead contract was not traded but was bid at 76 Euros ($88.63 per megawatt hour).
LSEG data show that the bid-ask for French baseload on Wednesday ranged from 20-23 Euros/MWh, after a close of 22.5 Euros at the previous day's position.
In a research report, LSEG analyst Riccardo Paraviero said that "tomorrow's outlook will be bearish again" as a large increase in wind and solar energy supplies is expected.
According to LSEG, the availability of coal and gas-fired electricity capacity was expected to also increase on Wednesday.
LSEG data revealed that the German wind power output will increase by 6.9 gigawatts, to 26.4 GW in the next day, while French output is expected rise by 3.1 GW, to 12.0 GW.
The report also showed that both countries could expect to gain a solar output of 2.3 GW.
The French nuclear energy availability increased by one percentage point over night to 75%.
After the holiday, German demand is expected to increase by 200 MW on Wednesday to reach 61.1 GW. In France, it is predicted to grow 3.2 GW per day to reach 48.8 GW.
The curve shows that the German baseload for the year ahead was down by 0.2%, at 88.1 Euro/MWh.
After a settlement of 52.7 euros, the equivalent French position wasn't traded.
The benchmark contract for the European carbon market 2025 was down by 0.2%, at 79.78 Euros per metric ton.
In a Monday keynote address, Economy Minister Katherina Reiche warned that Germany is in a structural crises and must undergo sweeping reforms in order to regain economic competitiveness.
(source: Reuters)