More wind and lower demand causes spot prices to fall

European power prices fell on Thursday, as the main German market was expected to have more wind energy and demand in the area had slowed down ahead of the weekend.

Francisco Gaspar Machado, LSEG analyst, said: "Tomorrow’s outlook is negative, underpinned both by the rising temperatures in Central West Europe and strong wind energy supplies in Germany."

LSEG data shows that German baseload power for the day ahead was 17.1% lower at 87 Euros ($91.69), while still remaining at multiple-week highs.

The French equivalent contract was not traded but the settlement indicated a significant drop from its previous 108 euros.

The German wind energy output is expected to increase by 12.3 gigawatts per day (GW), to reach 37.1 GW.

The French nuclear capacity remained unchanged at 82%.

The average temperature in France is expected to rise by 2.5 degrees Celsius, to 10.2 degrees Celsius.

The German power consumption is expected to drop by 1.3 GW, to 61.5 GW during the same time period. Temperatures are also predicted to rise by 3.4°C.

The curve shows that German baseload power for the year ahead was up 0.3% at 96.8 Euro/MWh. Major energy commodities, such as oil, were slightly higher.

The French equivalent contract for 2025 gained 1.5% to 76.6 euros.

The European CO2 allowances added 1% to 68.54 Euros per metric Ton for December 2024.

Axpo, a Swiss utility, announced that its nuclear power plant block 2 in Beznau would remain operational until 2032 and block 1 will be operational until 2033.

Both blocks were examined for safety and investment plans prepared. Both 365 MW blocks are used to supply both national and international markets.

Charts from an energy data service showed that the collapse of France's government, Europe's largest electricity exporter, may have implications for EU energy markets. Reporting by Vera Eckert, Editing by Janane Vekatraman.

(source: Reuters)