Spot prices drop on increased renewable output
The European baseload contracts fell on Wednesday due to a forecasted sharp rise in 'wind power supply', while the demand was expected?to fall.
LSEG data shows that the German baseload day-ahead contract dropped 20.6% to 88.41 euros per megawatt at 0929 GMT. The French equivalent contract dropped 30% to 21 Euro/MWh.
Data from LSEG showed that German wind power production is expected to increase by 9.9 gigawatts on Wednesday to 23.8 GW. Meanwhile, French?wind energy is projected to grow by 1.6 GW up to 6.1 GW.
LSEG data revealed that power consumption in Germany will drop by 1.3 GW - to 60.5 GW - on Wednesday. In France, demand is expected to fall by 3.2 GW - to 53.5 GW.
Analysts at Engie EnergyScan say that temperatures will remain above normal for the remainder of the week, especially in Germany.
They added that they also expect wind power generation to increase in Germany toward the end the week. This will put downward pressure on the prices.
The French nuclear capacity dropped two percentage points to 88% as the Dampierre reactor was taken offline for a planned maintenance.
On Tuesday, the French contract with an equivalent year-ahead baseload price of 53.80 Euros/MWh was not traded.
E.ON, Europe’s largest energy network operator, will increase spending to 48 billion euros by 2030. This is part of a plan to protect and expand?grids, and to prepare them for the?buildout of data centers?across Europe.
The benchmark contract on the European carbon markets rose by 2.5%, to 72.44 euro per metric ton. $1 = 0.8483 Euros (Reporting and Editing by Janane Venkatraman; Reporting by Forrest Crellin)
(source: Reuters)
