Prices of prompts are rising due to a lack of German wind energy and a tighter French nuclear policy
The European spot electricity price rose on Thursday, as the wind generation in Germany is expected to fall at a time of tightened nuclear supply in France. Meanwhile, higher temperatures in summer boosted demand for air-conditioning power in the area.
Riccardo Paraviero, LSEG analyst, said that Germany, given this outlook, must rely heavily on imports during shoulder hours, i.e. early morning and evening before and after daily usage cycles.
The German baseload power at 0810 GMT was 10.8% higher than the previous close of 104.4 euros ($121.02) per megawatt-hour (MWh).
The French equivalent day-ahead position is 2.5% higher, at 93 Euro/MWh.
LSEG data put the German wind power production on Friday at 2.7 Gigawatts (GW), a drop from 14.9 GW that was expected on Thursday. This is compared to a total of 75 GW in on-shore and offshore capacity.
The French nuclear capacity has dropped two percentage points, to 78%.
The demand is expected to remain relatively stable, as air conditioners are still used during the summer. Demand is typically lower on Fridays before the weekend.
In France, the usage on Friday is likely to be 46.4 GW. In Germany, it will probably be 51.5 GW.
Temperatures are expected to rise by 1.5-2 degrees Celsius until Friday.
Rhine river shipping is still hampered by low water levels following dry weather, despite recent rains causing a modest rise.
The German baseload contract for the year ahead was up 0.1% at 87.2 Euro/MWh, while the French equivalent was not traded at 64.9 euro.
The benchmark contract on the European carbon markets was down 0.1% at 71.21 Euros per metric ton.
Analysts' expectations for the European Union carbon market have remained roughly unchanged at 73.54 euro/t on average, as the threat of U.S. Tariffs and weak industrial production weighs heavily. ($1 = 0.8627 euro) (Reporting and editing by Sonia Cheema, Vera Eckert)
(source: Reuters)
