Prices for day-ahead solar are higher in Germany
The French and German day-ahead baseload power prices increased on Monday morning, due to a weaker solar production in Germany and heightened demand in France.
LSEG data show that the French baseload contract for Tuesday increased by 2.25 Euros to 42.00 Euros per Megawatt Hour (MWh), while the German equivalent contract rose 35.35 Euros to 90.50 EUR/MWh.
In France, residual load (the amount of power required by conventional plants after accounting for renewables) is expected to grow by 2.8 gigawatts per hour each day and average 33.6 GWh/h.
Analysts at Engie EnergyScan say that even though it is windy today in Germany, the weaker solar production will drive prices up.
After the heatwave of last week, Europe's average temperatures are lower and there is more wind.
The outlook for this week is expected to be different. The forecast is for drier and warmer temperatures, with higher temperatures returning at the end the week. Analysts added that a period of calmer wind output should follow.
Think tank Ember reported that a record-breaking heatwave in Europe between late June and the middle of last weekend caused daily electricity demand to increase by up to 14%, causing prices to double or triple.
The use of air conditioners increased between June 28 and July 2. In Spain, France and Germany, the daily electricity demand rose by as much as 14%.
The German contract for the year ahead was down by 0.80 euros at 85.90 euro/MWh. The French contract for the year ahead had not traded yet but settled at 63.40 euro/MWh on Friday.
The benchmark contract on the European carbon markets fell by 0.36 euros to 71.31 euro per metric ton.
(source: Reuters)
