German wind power supply drops sharply, lifting spot prices

European spot electricity prices, for delivery on Tuesday, rose on Monday as German wind power is expected to drop by almost half while demand is expected to rise.

LSEG data shows that the German baseload electricity for Tuesday at 0914 GMT was 81.50 Euros ($90.71 per megawatt-hour (MWh), up 48.2% compared to Friday's price for Monday delivery.

Data showed that the equivalent French contract was 32 euros/MWh. The contract for delivery on Monday did not trade Friday.

Guro Marie Wyller, LSEG analyst, said that "the wind power production in Germany is decreasing day by day and reaches a low around noon."

She added that the Netherlands and France will also see a reduction in residual loads on Tuesday.

LSEG data indicated that the German wind power production was projected to drop by nearly half, from 7.9 gigawatts to 7.4 GW. The French output is expected to fall by 1.3 GW down to 940 Megawatts.

The data indicated that the German solar generation is expected to increase by 250 MW to 20 GW on Tuesday.

On Tuesday, power consumption in Germany will increase by 1.7GW to 53.2GW. In France, demand is expected to rise by 480MW to 42.3GW.

The French nuclear capacity remained unchanged at 70%.

The German baseload power for the year ahead rose by 3.6%, to 89 Euro/MWh.

Analysts from Mind Energy stated in a research report that there is an initial recovery in the German contract for the year ahead after Friday's falls, probably in response to news that U.S.A. and China were getting along well in ongoing trade talks, they said.

After closing at 60.90 euro on Friday, the French equivalent was not traded.

The benchmark contract on the European carbon markets rose by 2.6%, to 72.20 euro per metric ton. $1 = 0.8985 Euros (Reporting and editing by Sonia Cheema; Forrest Crellin)

(source: Reuters)