Solar spot prices rise due to a drop in supply

The European spot electricity prices rose on Tuesday due to an anticipated drop in solar power generation across the region.

LSEG data show that the German contract for day-ahead electricity rose 8%, to 105 Euros ($122.92), per megawatt hour. The equivalent French contract grew 8.7% to 84.25 Euros/MWh.

LSEG data indicated that the German wind power output is expected to increase by 2.1 gigawatts to 7.4 GW while French output will remain unchanged at 3.7 GW.

LSEG analyst Xiulan he said that the German wind power production is expected to decrease gradually throughout the day, and then fall below the levels of the previous day in the evening. This creates a slight bullish signal.

The data revealed that the German solar power production is expected to decline by 1.6 GW and reach 14.6 GW. In France, solar power was predicted to decrease from 1.4 GW up to 3.5 GW.

The French nuclear capacity fell by two percentage points, to 73% total capacity, as the Penly I reactor was taken offline for maintenance.

LSEG data shows that the German demand for power is expected to increase by 190 megawatts to 52.3 GW by Wednesday, while France's is projected to grow by 100 MW up to 43.3 GW.

The German baseload contract for the year ahead fell 0.6%, closing Friday at 85.55 Euros/MWh. Meanwhile, the French contract for front-year was not traded and closed last Friday at 61.80 Euros.

The benchmark contract for the European carbon market 2025 fell by 0.6%, to 71.80 euro per metric ton.

Sources say that U.S. officials and Russian counterparts discussed energy deals during the month-long negotiations to bring peace to Ukraine. Sources say that $1 is equal to 0.8542 Euros (reporting by Forrest Cressin, editing by David Goodman).

(source: Reuters)