German Spot Contract Lifted by Lower Wind Power Supply

On Monday, the German baseload contract increased due to a waning wind supply and a slight increase in demand.

LSEG data shows that the German day-ahead power contract for baseload power was at 111 euros ($129.73 per megawatt hour) at 0923 GMT. This is a?17.7% increase from Friday's closing price.

The French equivalent contract was at 91 Euros/MWh - down 3.7% on Friday's closing price for Monday delivery.

LSEG data shows that German wind power production is expected to fall by 23,2 4.5 gigawatts - to 22.6 GW - on Monday. Meanwhile, French wind power is projected to 'fall by 3.6 GW - to 10,7 GW.

LSEG data showed that power consumption in Germany is expected to increase by 430 megawatts on Monday to 66.8 GW. In France, demand is 'forecast' to fall by 1.5 GW at 64.3 GW.

The data also showed that temperatures are expected to increase in the region, with France's temperatures expected to go up by 1.4 degrees Celsius, to 9.8C, and Germany's temperatures expected to rise 4.6C, to 5.1C.

In an online note, Engie's EnergyScan analysts said that temperatures are expected to remain above normal this week, with France staying?3C higher than average. However, by the end and beginning of next week, temperatures will be back to their seasonal norms.

The French nuclear power availability dropped by one percentage point, to 87%. Unplanned outages due to Storm Goretti at Flamanville 1, 2, and 3 reactors were delayed until February 1.

The German baseload for the year ahead was 1.6% higher at 85.05 Euro/MWh. This is in line with the rising prices of?gases and carbon.

The French equivalent, which closed at 49.45 Euros/MWh last Friday, was not traded.

The benchmark contract on the European carbon markets increased by 0.2%, to 89.75 euro per metric ton. $1 = 0.8557 Euros (Reporting and editing by Susan Fenton; Forrest Crellin)

(source: Reuters)