The impact of renewable energy on spot prices
The European spot electricity contract for Friday was cancelled on the assumption that "demand" would continue to decline while "renewable generation" is expected to increase.
By 0923 GMT, the German baseload for the day ahead was down 12.9% to 66.75?euros ($78.47). The French equivalent contract fell?37.3% to 12.85 euros/MWh.
LSEG data revealed that German wind generation is expected to increase by 3.5 gigawatts, to 27.3 GW. French wind output will drop by 3.9 GW at 10 GW.
The data also showed that the German solar power sector has grown by nearly?1 GW.
LSEG's Naser Hashemi stated that this level of wind and sun output?should have residual load in Germany at the middle of Friday afternoon close to zero.
Analysts at Engie’s EnergyScan stated that despite the warm temperatures, which limit heating demand, wind generation this week is expected to drop to below 10 GW next week. This will lift residual loads in Germany.
LSEG data show that heavy rains over the past few weeks also pushed up the hydro balance in continental Europe to its highest level for February since at least 2021. This was primarily due to levels in Spain, Portugal, and other countries, which were at their highest for at least a decade.
LSEG data shows that French consumption is expected to drop by 1.6 Gigawatts on Friday to 51.9 GW, while Germany's power demand will fall by 2.6 GW to 57.9 GW, as temperatures are forecast to rise by 1.5 degrees Celsius in average to 11.6 C.
The French nuclear capacity has increased by two percentage points, to 90 percent of the total.
The?German baseload for 2026 was down 2.1% to 50.50 Euros/MWh.
Benchmark European carbon permits dropped 3.7% to 69.88 euro per metric ton after Italian Industry Minister Adolfo urso called on the European Commission?to?freeze? the bloc's scheme of carbon-permits.
The French utility Engie announced on Wednesday that it would buy UK Power Networks, an electricity distributor in the UK. This move is part of a plan to expand their power business. ($1 = 0,8475 euros). (Reporting and editing by Andrew Heavens; Forrest Crellin)
(source: Reuters)
