Spot price expected to be affected by strong German wind output

The European spot electricity prices are expected to drop on Tuesday as the wind power supply is expected to increase and demand in France will fall during Armistice Day, November 11.

The French and German contracts remained untraded as of 0846 GMT. According to LSEG, the French contract had a range of bids and offers between 15 euros ($15.16), and 24 euros, per megawatt hour.

The data revealed that the closing prices for Monday in France were 49.10 euro/MWh and in Germany 109.90 euro/MWh.

Riccardo Paraviero, LSEG analyst, says that the outlook for Tuesday is a bit more bearish, as a large increase in wind energy supplies has displaced demand growth.

LSEG data revealed that on the supply side German wind output will increase by 10.6 gigawatts, to 18.8 GW, while French output is expected by 1.5 GW, to 9 GW.

LSEG data shows that German power consumption will rise by 1 GW, to 60.8 GW, on Wednesday. Demand in France is expected to fall by 3.6 GW, to 45.1 GW before the Armistice Day holiday.

The French nuclear power capacity fell by two percentage points, to 74% total capacity, as the Bugey 4, reactor was shut down unexpectedly.

EDF, the operator, said that the Bugey 4 reactor automatically stopped on Sunday, during its planned restart. It has been offline since August 30 for fuel reloading, and teams have been mobilised to investigate the cause.

The German baseload contract for the year ahead was up by 0.1% to 88.75 Euros/MWh.

The French year-ahead was not traded with a bid of 52.65 euro.

The benchmark contract for the European carbon market 2025 was up 0.5%, at 79.88 Euros per metric ton.

(source: Reuters)