The price of wind power is rising

European spot electricity for Tuesday delivery fell Monday, as a rise in wind power was expected to overshadow a smaller drop in solar power.

LSEG data show that the German baseload electricity price for Tuesday is 71 Euros per Megawatt Hour (MWh), down 6.3% from last Monday.

Data showed that the equivalent French contract was 18.50 euros/MWh. The Friday contract for Monday was not traded.

LSEG data indicated that the German wind power production was expected to increase by 6.5 gigawatts to 22.5 GW while French output is projected to grow 3.3 GW up to 8.2 GW.

The data indicated that the German solar generation is expected to drop by 4.5 GW to 11.5 GW on February 2.

France Territoire Solaire, a think tank for energy, has said that France will connect 1.4 GW solar power by 2025. This is down from 1.6 GW in the quarter before.

The group reported that more than half of the installations were from the "medium-sized roof" segment. This segment is installed primarily in agricultural buildings such as barns and sheds.

Six reactors were taken offline for maintenance, resulting in a drop of eight percentage points in the French nuclear capacity to 56%.

On Tuesday, power consumption in Germany will increase by 2.6GW to 53.2GW. In France, demand is expected to increase by 1.5GW to 43.2GW.

The German baseload power for the year ahead rose by 1.6%, to 90.95 Euro/MWh.

Energy Danmark analysts reported that the market changed direction on Monday morning after a slight drop on Friday. This was due to Trump's retreat on his tariff threat over the weekend.

The French equivalent, with a bid of 60.55 euro, was not traded.

The benchmark contract on the European carbon markets rose by 2.4%, to 73.30 euro per metric ton. (Reporting and editing by Mrigank Dahniwala; Forrest Crellin)

(source: Reuters)