Lower renewable production lifts spot prices

German baseload day-ahead power prices increased compared to last Monday, as the renewable supply is expected fall and demand is predicted to rise.

LSEG data shows that the German baseload contract for Tuesday is 139 euros per Megawatt Hour, at 0928 GMT. The equivalent French contract is 51 euros/MWh.

The Friday contracts for both Mondays were not traded. Last Monday, the German contract closed for 101.50 Euros/MWh and the French contract for 33.50 Euros/MWh.

According to LSEG analyst Naser Hachemi, consumption is increasing in Germany. This is accompanied by a decline in wind power, and a reduction of solar generation.

LSEG data indicated that the German wind power production was expected to drop by 6.6 gigawatts on Tuesday to 4.7 GW. The French output is projected to decline by 450 megawatts, to 2.6 GW.

The French nuclear capacity has dropped by one percentage point, to 776 % of the total.

On Tuesday, power consumption in Germany will rise by 2.1 GW and reach 54.7 GW. In France, demand is expected to increase by 1.6 GW at 43.8 GW.

The temperatures are expected to fall as early as Tuesday, and return to normal. Analysts at Engie Energy Scan also expect a significant increase in wind conditions from Wednesday.

LSEG data show that the German baseload power for the year ahead rose by 0.3%, to 87.05 Euros/MWh. The French equivalent increased by 0.7%, to 60.25 Euros.

The benchmark contract on the European carbon markets rose by 0.3%, to 76.30 Euros per ton. (Reporting and editing by Tasim Zaid; Forrest Crellin)

(source: Reuters)