As the heat fades, spot prices will continue to fall.
The day-ahead power prices in France and Germany fell for the third consecutive day on Thursday, as temperatures began to cool after a prolonged heatwave. Meanwhile, nuclear availability increased in France.
The price decline was less dramatic than it had been on Wednesday. This is because the temperatures are expected to drop more slowly and German wind output will be lower after a sudden increase in mid-week.
LSEG data revealed that the French baseload day-ahead contract was down 11.1% at 72.25 Euros per Megawatt Hour (MWh) as of 1101 GMT. The German equivalent contract fell 2.6% to 84.50 Euros/MWh.
The benchmark European power price was above 100 euros/MWh for the first since April, as a heatwave in early summer spread across Europe and boosted electricity demand.
The prices have fallen since the peak of the hot weather, and the supply has increased due to the increase in German wind production and the availability of French nuclear power.
According to LSEG, the average daily temperature for Germany is expected to fall by 1.5 degrees Celsius (34.88degF), compared to Thursday. In France, it's predicted to fall by 0.2 degree.
The German demand for power is expected to drop by 1.6 gigawatts to 53.9 GW this Friday. Meanwhile, the French demand has been pegged at 46.2 GW, a decrease of 720 MW.
According to an estimate, in France 79% of France's nuclear power was operational, up from 78% Wednesday and 72% Tuesday.
Two EDF hydroelectric plants in the Alps, which were halted due to a flash flooding, have resumed production.
The German government predicted that wind power production would drop by 8.8 GW per day to 9.2 GW while solar energy was expected to rise by 1.8 GW up to 18.6 GW.
The German baseload contract for the year ahead was up 0.3%, at 86.90 Euros/MWh. In France, it increased by 0.3% to reach 63.20 Euros/MWh.
The benchmark carbon contract on the European market gained 1%, to 72.65 Euros per metric ton. This is a continuation of the recovery from the eight-week low reached Monday.
Brent crude oil prices are down while Dutch benchmark gas prices are up.
(source: Reuters)
