German spot contracts trade higher as wind power drops
European spot electricity for Tuesday delivery increased on Monday. German wind power is expected to decline while demand will rise. This will make the country more dependent on imported power.
LSEG data shows that the German baseload electricity price for Tuesday at 0951 GMT was 77 Euro per megawatt-hour (MWh), an increase of 8.5% compared to last Monday.
Data showed that the equivalent French contract was 25 euros/MWh.
On Friday, both Monday contracts were not traded.
Naser Hashemi, LSEG analyst, says that the residual load in Germany is expected to increase on Tuesday, but decrease across the rest the region.
LSEG data indicated that the German wind power production was expected to drop by 1.1 gigawatts to 10.5 GW while French output is projected to increase by 1.9 GW up to 3.6 GW.
The data indicated that the German solar generation is expected to increase by 710 Megawatts (MW), to 15.7 GW on Tuesday.
The French nuclear capacity increased by five percentage points, to 71% total capacity, as three reactors were returned from planned maintenance.
On Tuesday, power consumption in Germany will increase by 1.1GW to 53.2GW while in France demand is expected to increase by 540MW to 42GW.
The German baseload power for the year ahead increased by 1.2%, to 86.80 Euro/MWh.
The French equivalent fell 0.5% to 60.35 Euros.
The benchmark contract on the European carbon markets rose by 1.3%, to 71.33 Euros per metric ton.
Mind Energy analysts stated that the benchmark carbon contract will not fall any further than Friday's closing price as it faces resistance at current levels. It has also been trading in a range for some time above 70 euros. (Reporting and editing by David Gooding)
(source: Reuters)
