Prices fall despite short-term bullish factors
The European spot electricity prices fell on Tuesday despite lower renewables and nuclear supplies and an increase in consumption?in France - as demand decreased across the region.
LSEG analysis identified increasing thermal power as a market factor, which?overall?worked to bring down levels in Germany & France.
LSEG data shows that the French baseload day-ahead was priced at 95 euros ($99.88 per megawatt hour) at 0940 GMT. This is 4% lower than at the previous close.
The German equivalent price dropped 1.6% to 106.8 Euro/MWh.
LSEG data shows that German wind power output is expected to fall by 4.2 gigawatts on Wednesday to 13.1 GW.
The French nuclear power capacity fell by two percentage points, to 84%.
While the German power consumption will remain at 62.1 GW on both days, France's is expected to increase by 300 MW, to 60.3 GW.
The temperature should rise by 1.1 degrees Celsius in Germany, and fall by 1.2 in France. Overall, the picture is milder than average long-term temperatures would suggest.
In a report on the country, DWD (German meteorological office) said that "temperature highs are not wintery at all. Maximum temperatures in the west range from 4-13 degrees."
The report noted that there were large regional differences. Near the Danube River in the south-east of the country, for example, only one degree was recorded.
German baseload year-ahead was down 1.1% at 84.4 Euro/MWh. Untraded was the same French year-ahead position that closed at 50 euros/MWh.
After the expiration of the 2025 contract on Monday, the benchmark contract for the European carbon market 2026 added 0.3% at 87.5 euros per metric ton.
The German economy ministry published on Monday a?action plan to improve grid bottlenecks.
It rejected the calls of some northern states to split Germany's electricity market into different zones in order to take account of the location of renewable energy capacity. Reporting by Vera Eckert and Editing by Leroy Leo. $1 = 0.8511 Euros
(source: Reuters)
