German spot contracts rise on low wind output
The German spot electricity price increased on Tuesday, amid expectations that wind power production would increase slightly. However, levels will still remain below the seasonal averages.
Analysts at Engie Energy Scan said that low wind generation was supporting prices across North-West Europe, except in France.
They said that in France, gas-fired generators are not used except for morning and evening peak times, and nuclear power is plentiful. This has pushed prices down throughout the day.
LSEG data shows that the German contract for day-ahead electricity was up 6.9% at 146.40 Euro per Megawatt Hour, while its equivalent French contract fell 18.5% to 52 euros/MWh.
LSEG data indicated that the wind power output in Germany will increase by 300 megawatts, to 6.8 GW on Wednesday. In France, it is expected to rise 470 MW, to 3 GW.
According to LSEG analyst Naser Hachemi, although wind production is nearly unchanged in average, the decrease during the second maximum is offset by a rise in the early morning hours of Wednesday.
The data revealed that the German solar energy generation is expected rise from 2.3 GW up to 10.5 GW.
LSEG data shows that German power consumption will drop by 410 MW on Wednesday to 56.3 GW while France's demand is expected to increase by 1 GW to 487.5 GW.
The French nuclear capacity fell by two percentage points, to 79%. This was due to the planned shutdown of Penly 1, a reactor.
The German baseload contract for the year ahead fell 0.4%, to 86.20 Euros/MWh. Meanwhile, the French contract for front-year was down 1.9% at 55.60 Euros.
The benchmark contract for the European carbon market 2025 was down 0.5%, at 76.41 Euros per metric ton.
A group of NGOs revealed on Tuesday that the public funding of international fossil fuel deals dropped by as much as 78% in the last year, even though the members of the coalition, such Germany and the United States approved new projects. Forrest Crellin reported. Mark Potter (Editing)
(source: Reuters)
