German spot prices are affected by the increase in wind power supply

The German spot electricity contract on Friday dropped sharply Thursday. Strong gains in wind energy output are expected to continue until next Monday.

By 0802 GMT, the German baseload contract for day-ahead was down by 20.5% to 60 euros ($70.14). The French equivalent contract increased 52.4%, to 16 euros/MWh.

Analysts at Engie Energy Scan said that location spreads in Western Europe are increasing, although not equally. The German price is higher than the Netherlands and Belgium, while the French price continues to be at a significant discounted rate.

LSEG data revealed that German wind power production was expected to increase by 5 gigawatts, to 26 GW. French wind power production was projected to decrease by 3.4 GW, to 7.5 GW.

LSEG analysis shows that German wind energy supply will surge to over 40 GW Monday, and then remain just below this level on Tuesday. Then it will fall back to around 27 GW by Wednesday.

Marcus Eriksson, LSEG analyst, says that the residual load in Germany is declining but the price continues to be supported by a decrease in thermal availability as well as a lower than expected renewables production in the region.

The French nuclear capacity remained unchanged at 79%.

Data from EDF showed that a strike at EDF's power plants early Thursday reduced the nuclear output by 575 MW and hydropower by 500 MW.

LSEG data revealed that the power demand in Germany is expected to decline by 1.3 GW to 53.2 GW this Friday, while French consumption will fall by 870 Megawatts to 42.66 GW.

German baseload for the year ahead fell 0.1%, to 87.40 Euros/MWh. Baseload for 2026 in France was down by 0.3% to 59.85 Euros.

Benchmark European carbon permits fell 0.4%, to 76.77 euro per metric ton. $1 = 0.8554 Euros (Reporting and Editing by David Goodman).

(source: Reuters)