German Spot Contracts Rise Due to Lower Wind Forecast

Early trading saw the German and French baseload contracts split as wind output in Germany was falling but in France it was rising.

LSEG data show that the German baseload day-ahead power?contract rose by 10.7% at?0928 GM time to 111.01 euros ($131.45 per megawatt hour). The French equivalent contract fell 5.2% to 41.25 euros/MWh.

LSEG data shows that German wind power production is expected to drop by 5.1 Gigawatts on Wednesday to 10.2 GW. French wind power, however, is expected to increase by 1.9 GW up to 12.3 GW. Independent advisers to the European Union said that they were not prepared for climate change. They urged them to increase their investments in order protect infrastructure and people from increasing floods and wildfires.

LSEG data shows that power consumption in Germany will increase by?110 Megawatts on Wednesday to reach 63.6 GW. In France, demand is forecast to drop 220 MW and?reach a total of 61.9 GW.

The French nuclear availability dropped two percentage points, to 88% total capacity after the planned Cruas 2 outage. EDF, the French nuclear operator, said that it would have to increase maintenance costs by around 1.5 million to 3.75 millions euros per year because of its need to reduce power to its nuclear reactors in response to an increased electricity supply.

The curve showed that the German year-ahead basisload price rose by 1% to 76.85 Euros/MWh. On Friday, the French equivalent was not traded, with a range of bid-ask between 49.90 euros/MWh and 50 euros/MWh.

The benchmark contract on the European carbon markets?ticked up 0.3%, to 69.36 Euros per metric ton.

Ingvild sorhus, analyst at Veyt, stated that the?technical view for the carbon markets is bearish. A further drop in net-long positions?is expected when the Commitment Traders Report comes out on Wednesday.

She said that "with the recent drop in prices, revenues from allowance auctions, including volumes for REPowerEU, are slowing down."

(source: Reuters)