Prices increase on lower wind energy and wider energy complex
European baseload electricity prices increased on Monday morning, mainly due to the expectation of a lower wind output on Tuesday and gains on other energy markets.
The French day-ahead baseload contract jumped 18.40 euros, to 47.50 Euros per Megawatt Hour (MWh), by 0848 GMT. Meanwhile, the German equivalent contract was 90.85 Euros/MWh.
The wind power output in Germany will decrease tomorrow, while consumption increases. "The moderate increase in solar output is not sufficient to compensate for the two changes. The residual load therefore increases day by day," said Guro Wyller at LSEG.
Wyller said, "We also expect that the residual load will grow in France."
The residual load is the demand that can only be met by conventional sources, such as nuclear power, fossil fuels and hydropower.
The wind power generation in Germany will decrease by 6.9 gigawatts per hour (GWh/h), to 6.9 GWh/h on average, while the demand for electricity is expected rise by 2.1 GWH/h to 52.4%.
French nuclear availability will be 71%.
By 0837 GMT the German baseload power for the year ahead had risen by 0.35 euros to 93.15 euro per megawatt-hour (MWh), while its French counterpart was up by 0.45 euro, at 69.75 euro/MWh.
Since Friday, power, gas and oil have increased on renewed concerns about disruptions in oil and gas supplies due to a conflict between Israel and Iran.
"The escalation over the weekend confirms that a long-lasting, deep-rooted war may unfold." Participants have increased the price of European energy complex because of this additional risk," said analysts from Engie EnergyScan. (Reporting and editing by Susanna Twidale in London. Nina Chestney is reporting from London.
(source: Reuters)
