Reduced wind output increases power prices
The European day-ahead electricity prices rose on Thursday, compared to the previous session. This is because wind generation in the region is expected decrease.
Riccardo Paraviero, LSEG analyst, said that the fundamental outlook for Germany has changed again to a tighter one. This is primarily due to the decreasing supply of wind energy.
He added that conditions are similar across the rest the region. The French and Dutch residual loads will rise dramatically.
LSEG data shows that the German day-ahead contracts rose 15.8% to close at 150 euros ($175.11) a megawatt hour, from its previous close of 150 euros.
Data showed that the French equivalent of the position rose by 4%, to 78.75 Euros/MWh.
LSEG data showed that the German wind power production is expected to drop 4.6 gigawatts to 5.6 GW this Friday.
On Friday, the wind power generated in France decreased by 1.5 GW.
The French nuclear energy availability dropped two percentage points to 84%.
The German demand was expected to drop by 510 megawatts to 63.8 GW Friday.
French usage is expected to increase by 550 MW on Friday, reaching 64.9 GW.
The German baseload for the year ahead was down by 0.5% to 84.9 euros/MWh. The French position for the year ahead was offered at 58.5 Euros/MWh after settling at 49.06 Euros/MWh.
The benchmark 2025 carbon contract on the European market was down by 0.3% to 81.5 euros per metric tonne. The German division TenneT IPO.TTH.AS, the Dutch operator of power grids, is launching a debt issuance program worth 35 billion euros to fund upgrades in infrastructure.
(source: Reuters)
