Heatwave increases demand for spot prices

The German and French power prices rose on Tuesday as the heatwave in many parts of Europe increased cooling demand.

LSEG data show that French baseload electricity for Tuesday increased by 132%, to 109 Euros per Megawatt Hour (MWh), by 815 GMT.

The German contract, which was equivalent to the German contract, increased by 126% and reached 117.5 Euros/MWh.

The authorities of several European countries, including Britain, have issued extreme health and heat warnings after temperatures in some countries soared to over 30 degrees Celsius.

The use of cooling systems is increasing, and so is the demand for electricity.

The heat wave that is currently affecting central and western Europe has increased cooling demand. Engie EnergyScan analysts noted that, at the same time as very low wind conditions, there are also extremely low wind conditions, with less than 10GW of power being generated in Germany all day.

"Meanwhile a very dry climate is stressing the hydro output."

The temperatures in western central Europe are expected to remain 8 degrees Celsius higher than normal until midweek. After that, they will return to normal. The wind power generation will also increase after midweek.

The weekend and the next week will be more unsettling and cooler. The temperatures will fall to near normal, and rain showers or thunderstorms are possible. "Large amounts of rain are unlikely to be widespread," said LSEG Meteorologist Georg Muller.

French nuclear availability is at around 70%

The German baseload power for the year ahead was down by 1.35 euros to 85.45 Euro/MWh, while its French counterpart had not traded.

The benchmark contract on the European carbon markets was down 0.63 euro at 73.33 Euro per metric ton. Reporting by Nina Chestney, London Editor: David Goodman

(source: Reuters)