Prices rise due to wind and nuclear shortages
The European day-ahead electricity prices rose on Thursday, as supplies of wind and nuclear power tightened. Demand in France, however, was expected to be unusually high, given the lower temperatures, for a Friday.
"The lifted residue load underpins a positive signal," said LSEG Analyst Riccardo Paraviero. He was referring to the increasing requirements for thermal capacities. Operators were also ramping up their gas availability to take advantage higher prices.
LSEG data shows that the French day-ahead contract has risen 25% since its previous close of 70 euros ($81.63 per megawatt hour) at 0900 GMT.
The German equivalent of the position was not traded, but the price was raised to 119 euros/MWh from the previous closing of 109 euro.
LSEG data showed that the German wind power production is expected to halve on a daily basis, with a likely Friday output of 6.7 gigawatts. This compares to 13.7 GW Thursday.
The French nuclear power capacity dropped by one percentage point overnight to 74%.
The German demand was expected to remain unchanged on both days at 58.8GW, despite the usual pre-weekend drop in demand.
French consumption was forecast at 50.1 GW on Friday, an increase from 49.4 GW.
LSEG data indicated that temperatures will drop by 0.6 to 1.1 degrees Celsius.
The German baseload for the year ahead was down by 1%, at 89.5 Euro/MWh.
The French position for the year ahead was bid at 55,3 euros after settling at 55,3 euros.
The benchmark contract for 2025 on the European carbon market was down by 1.4%, at 80.39 euro per metric ton.
As part of its hedge strategy, the German utility Uniper reported that it had sold large quantities of future Nordic nuclear and hydropower output.
It reported a net loss of a third in its earnings report for nine months, but maintained its previous forecasts for the entire year.
The Berlin government confirmed it is still interested in selling its Uniper stake directly to investors or through an initial public offer. ($1 = 0.8575 euro) (Reporting and editing by Ronojoy Mazumdar; Vera Eckert)
(source: Reuters)
