The rising German wind power generation is a factor in spot prices
European prompt electricity prices fell on Friday, as a result of expectations that German wind energy supply will double on Saturday.
Riccardo Paraviero, LSEG analyst, said: "The fundamental outlook (for Friday) is decisively negative. This is mainly due to the significant amount of wind energy production that has been released back onto the market."
He added that wind power production could reach 25 gigawatts during certain periods.
LSEG data revealed that the German baseload electricity contract for Friday had fallen 21.4% to 91 euros per Megawatt Hour (MWh) at 0925 GMT. The French equivalent contract fell 7.8% to 66 Euros/MWh.
LSEG data indicated that the German wind power production was expected to increase by 7.7 GW this Friday, while French output is projected to drop 180 megawatts to 4.4 GW.
The data indicated that the German solar supply is expected to drop by 2.5 GW, to 7.2 GW this Friday.
The French nuclear capacity has increased by two percentage points, to 73%.
The data revealed that power consumption in Germany is expected to drop by 800 MW on Friday to 55.1 GW while France's demand was forecast to increase by 320MW to 44.5GW.
French grid operators have said that the gas consumption in France will drop by nearly 20% by 2030 as a result of changes made to meet climate targets and to reduce costs.
The German power for the year ahead was down by 0.6% to 87.10 Euros/MWh, while French baseload 2025 fell 1.8% to 72.25 Euros/MWh.
The European CO2 allowances in December 2024 dropped by 1.2%, to 65.60 euro per metric ton. Reporting by Forrest Créllin Editing David Goodman
(source: Reuters)