German wind energy supply plummets on Monday

The sharp fall in German wind energy supply will likely increase the spot price for Monday. However, this drop is partially offset by increases in solar power and warmer temperatures that reduce heating demand.

LSEG data shows that the German and French Monday basis power contracts were not traded by 0950 GMT Friday.

LSEG data revealed that the day-ahead contracts were closed at 95.60 euros/MWh on Thursday and 77.50 euro/MWh on Friday.

According to LSEG analyst Naser Hachemi, wind power production will be the primary factor in a bullish trend this weekend and Monday. Germany is expected to become a net importer for the majority of Monday's hours.

LSEG data shows that German wind power production is expected to drop by 18.4 GW Monday to 4.2 GW while French wind generation is expected to increase 800 megawatts up to 4.5 GW.

The German solar energy supply is expected to increase by 3.1 GW, to 10.7 GW.

On Monday, power consumption in Germany will fall by 830 MW and reach 54 GW. In France, demand is expected to decrease by 1.8 GW and reach 44.7 GW due to the expected rise of 2.5C in average temperatures.

An analyst from Engie's Energy Scan stated that temperatures are expected to return to normal over the weekend and into the first week of next week. This will ease demand before cooling down again at the end the week.

The French nuclear capacity has increased by three percentage points, to 82%.

The German power contract for 2026 was down by 0.3% to 57.40 Euros/MWh, while the French baseload contract fell 0.3% to 86.25 Euros ($100.74).

The benchmark contract on the European carbon markets rose by 0.8%, to 75.19 euro per metric ton. $1 = 0.8562 Euros (Reporting and Editing by Sonia Cheema; Forrest Crellin)

(source: Reuters)