German spot prices fall on increased wind and French nuclear supply
The wholesale price of German spot power dropped sharply on Friday, as Germany was expected to experience a 60% increase in wind generation in the coming day. In addition, the French nuclear sector increased its availability in the region.
"We expect an overall bearish outlook for Germany", said LSEG Analyst Xiulan He. He also listed lower demand, improving brown coal supply and gas-derived supplies.
At 0815 GMT, the German day-ahead power was trading at 76.3 Euros ($89.48 per megawatt (MWh), 19.3% lower than its previous close.
In France, the day-ahead basisload was 0.7% higher, at 74.5 Euros/MWh. However, Germany still had a discount.
LSEG data showed that the German wind power production was expected to increase by 8.3 gigawatts per day, reaching 21.8 GW.
The French nuclear capacity has increased by 2 percentage points, to 68%.
The nuclear operator EDF warned that high water temperatures in the Garonne River in the south-west of France will affect electricity production in the 3.6 GW Blayais plant as early as June 30.
The river temperature is high, and this is the fourth warning, after Bugey, Saint Alban, and Golfech.
The German demand is expected to drop by 1.3 GW, reaching 53.7 GW, and the French demand, at 45.4 GW, will be down by 1 GW.
The German baseload contract for the year ahead fell 1% to 86.4 euros/MWh, while its French counterpart dropped 1.6% to 63.5 euros.
The benchmark contract on the European carbon markets for the Dec. 25 expiry fell 0.6% to 70.73 Euros per metric tonne.
On Wednesday, representatives of the energy, retail and industrial sectors criticised Germany's plan for a reduction in electricity tax. They warned that it could have a limited impact and distort the competition.
Germany, the Czech Republic, and 14 other nations have also demanded that the European Union implement stricter price controls on the new carbon market. ($1 = 0.8527 euro) (Reporting and editing by David Evans; Vera Eckert)
(source: Reuters)
