Low wind and hot weather will increase spot prices
German and French power contract prices for the next week will rise due to low wind output, which is limiting supply. Hot weather also increases demand. However, more forward-looking contracts were at a lower price on Friday morning in line with gas market.
LSEG data shows that the German and French baseload power contracts for Monday were not traded by 0926 GMT.
Baseload prices on Friday closed at 77.00 Euros/MWh, compared to 75.50 Euros/MWh on Thursday.
Engie EnergyScan analysts said that the daily report for today shows that hydropower production is declining and demand is supported by warm temperatures.
They said that "higher demand and lower renewables in shoulder hours will cause prices to rise on average."
LSEG analyst Xiulan Xiulan predicted a baseload rate of 97.40 euro/MWh.
LSEG data indicated that German wind output is expected to drop by 16.1 gigawatts to 4.8 GW while French wind production will be down 0.8 GW to 2.5 GW.
LSEG data revealed that the German solar energy supply is expected to increase by 7 GW and reach 19.5 GW.
The data shows that power consumption in Germany will rise by 2.5 GW Monday to 51.3GW while France's demand is expected to drop 2 GW at 45.6GW.
LSEG data indicated that temperatures in Germany are expected to increase by 4.1 degrees Celsius to 24.1C on Monday, while in France they will rise by 2.4 degrees to 24.6C.
The French nuclear capacity is flat at 68%.
German power prices for the year ahead fell 0.6%, to 85.35 Euros per Megawatt Hour (MWh), due to lower gas prices.
The French baseload 2026 contract was not traded with a bid of 62.20 euro/MWh, compared to a closing price on Thursday of 64.25 euro/MWh.
The benchmark contract on the European carbon markets increased by 0.51%, to 70.76 euro per metric ton. (Reporting and editing by Susanna Twidale; Nora Buli)
(source: Reuters)
