Prices drop due to lower gas prices and more nuclear
On Monday, the German baseload contract for 2027 dropped as European benchmark gas fell. Several nuclear reactors?returned to operation at the weekend and more are expected to?restart?this week.
At 0934 GMT the German baseload price for the year ahead was down 1.2% to 83.90 euros per megawatt hour, while its equivalent French price was not traded with a bid price of 49.10 euro/MWh.
Mind Energy analysts say that the German forward power market will drop on Monday as a result of milder weather, declining gas prices and retreating CO2.
The benchmark contract on the?European Carbon Market rose by 1.7%, to 82.71 Euros per metric ton.
Dutch and British wholesale prices fell to a two-week low on Monday as the forecasts cooled and there was hope that tensions between Iran and the United States would ease.
The French nuclear power capacity increased by three percentage points, to 90 percent of the total capacity. Three reactors were restored over the weekend.
EDF, the operator of Flamanville 1, said that it expects to re-start production on Tuesday following a nearly month-long shutdown caused by high winds and sal spray from Storm Goretti in January.
EDF data showed that reactor 3 should be back online within the next week. Reactor 2 will not be operating for maintenance.
LSEG data shows that the French spot day-ahead power contract is at 89.55 Euros/MWh. This is down 13.9% compared to the price paid on Friday for delivery Monday, and the German equivalent contract has not been traded.
LSEG data revealed that German wind 'power output' is expected to increase by 6.9 gigawatts to 38.5 GW on Monday, while French wind power production is?projected by 1.5 GW up to 9.3 GW.
LSEG data shows that power consumption in Germany will increase by 1.5 GW Monday to 67.8 GW. Demand in France is expected to rise by 1.1 GW at 62.6 GW.
Analysts from Engie EnergyScan stated that temperatures are expected to be slightly higher in Germany and the Netherlands, as they now expect prices to trend closer towards seasonal norms.
(source: Reuters)
