Spot prices are depressed by the sharp rise in wind energy supply
The European spot electricity prices fell on Tuesday, as the strong growth in German wind energy supply combined with the expected increase in solar power availability outweighed any slight rise in demand.
LSEG data revealed that the German contract for day-ahead electricity fell by 42%, to 66.25 Euros ($77.56), per megawatt hour, at 0940 GMT. The equivalent French contract, however, dropped by 37.9%, to 20.50 Euros/MWh.
Marcus Eriksson, LSEG analyst, says that residual load in Germany is declining, but imports will still be expected to Germany.
LSEG data indicated that the wind power output in Germany was expected to rise by 19.2 gigawatts on Wednesday to 25.9 GW. In France, it was expected to grow by 2.1 GW to 11 GW.
The data revealed that the German solar energy generation will increase by 900 megawatts, to 4.6 GW.
LSEG data shows that the German demand for power is expected to increase by 570 MW on Wednesday, while France's is expected to decrease by 340 MW.
The French nuclear capacity increased by two percentage points, to 76% total capacity, as the Cattenom 3, reactor returned after maintenance.
EDF data shows that a strike by unions at the French power giant EDF has reduced hydropower production in France by 800 MW but not nuclear power. CGT's representative confirmed that a separate, three-day strike at the Dunkirk Liquefied Natural Gas facility operated by Fluxys had curtailed flow out of the terminal. He didn't give specific figures.
The German baseload contract for the year ahead fell 0.2%, to 85.60 Euros/MWh. Meanwhile, the French contract for front-year was not traded with a price of 60.40 Euros.
The benchmark contract for 2025 on the European carbon market was unchanged at 73.99 euro per metric ton. EDF Energy announced on Tuesday that it would extend the lifespan of its Heysham 1 nuclear power plant in Britain by another 12 months, until March 2028.
(source: Reuters)
