Spot prices are expected to fall on stronger winds
The price of baseload electricity in France and Germany is expected to fall next week, as the wind power production increases. Also, a heatwave that hit Europe earlier this week has decreased.
LSEG data shows that the German and French Monday basisload power contracts had not been traded by 8:02 GMT.
Analysts at Engie EnergyScan said that "warm temperatures continue to support cooling demand in Spain today, while temperatures in other countries have dropped significantly compared to the beginning of this week. This has brought back more normal conditions for spot power prices."
The outlook is not much different, with milder weather forecast for the middle of next week. "But after that, a second heatwave is forecast for the end of next weekend, although it will be less intense." they added.
LSEG data shows that on Monday, the wind power output will likely increase from Friday's levels, and outweigh any reduction in solar output.
The German wind power generation will increase by 4.9 gigawatts per hour (GWh/h), to an average of 13.7 GWh/h, compared to Friday's levels.
The German solar energy output is expected to drop by 4.9 GWh/h compared to Friday's levels to 14.1 GWh/h.
The residual load in Germany, which is the amount of power that must be supplied by conventional plants after accounting for renewables, will likely decrease by 2 GWh/h by Friday, to reach an average of 51.8 GWh/h by Monday.
On Thursday, the German contract for the year ahead settled at 86.80 Euros/MWh and that of France at 63.70 Euros/MWh. The two contracts had not yet traded on Friday morning.
The benchmark contract on the European carbon markets fell by 0.21 euros to 71.85 euro per metric ton.
(source: Reuters)
