Increased wind energy output will pressure prices

French and German power rates are expected to be under pressure on Monday, as wind power production increases. Milder weather is also likely to follow a recent cold snap that has boosted day-ahead contract prices this week. LSEG data shows that the German and French baseload power Monday contracts were not traded by 0822 GMT Friday.

LSEG data shows that the German wind power production is expected to increase by 18.7 gigawatts on Monday, while French wind generation is projected to rise by 6.7 GW up to 11.4 GW.

In Germany, the residual load is expected drop by 15 GW to 36.94GW. France will see a decline of 11.1 GW to 48.5GW.

German solar power is expected to drop by 2.6 GW, to 1.6GW.

On Monday, power consumption in Germany will rise by 1.1 GW up to 63.5 GW while French demand will fall by 5.1 GW down to 61.2 GW. This is due to the expected increase in temperatures of 6.4 degrees Celsius in France. The French nuclear capacity remained at 81%. Siemens Energy announced Thursday that the company aims to return 10 billion euros in dividends to its shareholders by 2028, thanks to the surge in demand for infrastructure equipment. The German baseload for the year ahead was down 1.4% to 89.1 euro ($102.90). Its French counterpart had yet to begin trading. The French contract closed at 52 euros/MWh on Thursday. The benchmark contract on the European carbon markets fell 0.8%, to 80.72 euro per metric ton.

(source: Reuters)