Prices fall quickly on French nuclear and wind supply
The European spot power price fell on Tuesday. However, the German day-ahead rate remained at an enormous premium to France.
LSEG analyst Xiulan he said that a pronounced increase is expected in French wind energy generation in a short-term forecast. He added that the German outlook would be mildly positive due to higher consumption, and lower solar output.
LSEG data shows that French baseload day-ahead was down 9.2% to 83.50 Euros ($96.79 per megawatt hour) at 0855 GMT.
The German equivalent price dropped 1.5% to 102 Euros.
LSEG figures show that German wind power production is expected to drop by 2 gigawatts to 22.5 GW this Wednesday, while French wind generation is expected to more than double from 4.4 GW to 10.1 GW.
The availability of French nuclear energy was two percentage points greater overnight, at 84% total capacity.
The demand is expected to increase slightly. German consumption will rise by 700 MW, to 62.6 GW. French demand will be up by 600 MW, to 59.4GW.
The German baseload for the year ahead rose by 0.7%, to 90 euros/MWh. Meanwhile, French year-ahead remained untraded following its previous close of 52.40 euro/MWh.
The benchmark contract for the European carbon market 2025 increased by 0.3%, to 80.12 Euros per metric ton.
INES, the German group of gas storage operators, said that German inventories were at 75% and too low to ensure a stable supply throughout winter. INES warned that in extreme weather conditions, the supply could be tight by January or February. Its members had anticipated levels of around 81%.
Gas and wholesale power markets are linked, because gas is used to supplement other fuels such as coal or nuclear when renewable energy is not available.
(source: Reuters)
