German wind power boosts spot prices
German and French baseload electricity prices dropped by about 10% on Tuesday, as the wind power was expected to increase in Germany. However, price remained high due to a heatwave that has affected Europe.
As temperatures have risen, authorities in several European nations have issued health warnings. Wildfires in Turkey & France have forced more than 50,000 to evacuate.
On Monday, benchmark European electricity prices exceeded 100 Euros per Megawatt Hour (MWh) for the first since April due to cooling system requirements and low wind output.
The wind generation in Germany will increase tomorrow, and temperatures should ease off from today's peaks. This has led to a slight drop in prices on Tuesday.
Georg Muller, LSEG's meteorologist, said that the heatwave would be replaced with a period of cooler temperatures and drier conditions towards the weekend. However, it will become warmer again from July 10.
LSEG data shows that the German baseload day-ahead contract fell 13.80 euros to 106.10 Euros per Megawatt Hour (MWh) at 0756 GMT.
The French equivalent contract dropped from 100.25 to 13.75 euros/MWh.
LSEG data shows that wind power generation is expected to increase day-on-day in Germany by 2.1 gigawatt/hours. This will average 8.1 GWh/h.
The analysts at Engie EnergyScan stated in a daily report that the heatwave was putting pressure on the spot market. This is due to the combination of high temperatures and persistent conditions, which not only support cooling demand, but also impact generation.
The French utility EDF announced that it had shut down the reactor No. The Golftech nuclear plant in southwest France shut down its No. 1 reactor late Sunday night, in anticipation of a rise in temperature in the Garonne River that provides the cooling water for the plant.
EDF warned that two hydropower plants in the Arc Valley in southern France could lose power due to flooding. (Reporting by Susanna Twidale, London; Editing by Nina Chestney).
(source: Reuters)
