Prices rise dramatically on lower wind volume
The European spot electricity prices rose on Wednesday due to forecasts of lower wind power generation, which overrode?effects from slightly higher solar power and nuclear power output.
In a research note for the day ahead, LSEG analyst Xiulan said that "the signal?is bullish" for Germany. He added that France is also affected by this wind downturn.
According to LSEG data, the price of French baseload electricity for delivery on Thursday was 17.4% higher than at 1000 GMT at 75.2 Euros ($87.53 per megawatt-hour (MWh).
In its opening trade, the equivalent German day-ahead contract gained 13.6% and reached 94.3 Euros/MWh.
LSEG data shows that German wind power production is expected to drop by 5.6 gigawatts per day to?arrive at 23. 8 GW.
Data shows that French wind production on Thursday was 3.9 GW compared to?5.6 GW Wednesday.
The French nuclear power capacity was one?point higher, at 87%.
The consumption patterns were mixed. Germany's was expected to drop by 500 MW on Thursday to reach 61.6 GW, while France's was predicted to increase by 1.6 GW, to reach 57.4 GW.
The German baseload for the year ahead was down by 0.6% to 83.5 Euro/MWh.
Baseload in France for the year ahead was down 0.6%, at 48.3 Euro/MWh.
The benchmark contract for the European carbon market 2025 fell 0.7%, to 82.27 Euros per metric ton.
Analysts at Kpler, an analytics and data company, say that the French front-year lost 60% of its value over the course this year due to a combination of'strong nuclear availability', "solid renewable output" and "stagnant demand". None of these factors are expected to change in the near future.
They added that the French Cal-26 contract may still be looking for a floor.
Grid operator RTE has said that France is experiencing electricity overcapacity due to a decline in industrial output, while nuclear and renewable energy are growing. They have called for Europe-wide action to increase electrification. $1 = 0.8591 euro (Reporting and additional reporting by Forrest Krellin, editing by Eileen Soreng).
(source: Reuters)