Spot prices are affected by a combination of falling demand and increased supply
On Wednesday, a higher supply forecast led to a rise in the wholesale electricity prices across Europe. Demand is expected to decrease.
The main reason for the decline in German residual load is due to increasing wind power supply. Riccardo Paraviero, LSEG analyst, said: "The signal is bearish."
The availability of thermal energy in Germany is increasing across the board. "French nuclear availability is also increasing."
LSEG data show that the French day-ahead power contract, which is a baseload electricity contract, was down 8.6% to 74 euros ($86.01), while its German counterpart was not traded with a price of 109 euro/MWh after a close of 127.8 Euros, LSEG said.
On Thursday, wind power production in Germany will increase 63% from one day to the next to 14 gigawatts. In France, output is expected by 2.1 GW up to 2.7 GW.
The combined solar power generation in Germany and France was predicted to increase by 1.1 GW.
The French nuclear capacity has increased by one percentage point, to 75%.
On Wednesday, Germany's power demand is expected to increase by 1.2 GW, to 57.8GW, while France's is forecast to drop by 230MW, to 46.8GW.
The German baseload year-ahead fell 0.6%, to 87.5 Euros/MWh. In France, the front-year settlement was not traded but showed a lower price.
The benchmark contract for the European carbon market in 2025 was almost unchanged, at 78.28 euro per metric ton.
On a macroeconomic level, the German industrial production in August was much lower than expected due to a drop in auto production.
Energy consumption is negatively affected by the lack of economic growth.
The EEX bourse released September trading data. European power futures volume fell 2% on an annual basis to 797 TWh, while European power spot volumes rose 1% to 73 TWh. Reporting by Vera Eckert, Editing by Harikrishnan Nair. $1 = 0.8604 euro
(source: Reuters)