Wind output will drop as French cut back on nuclear power
The French spot electricity price fell in early trading Tuesday on an improved outlook for nuclear supply. However, the German contract was not traded and maintained a nominal premium.
Riccardo Paraviero, LSEG's analyst for the German market, said: "Tomorrow’s outlook is bullish. The main signal comes from a lifted residual burden in Germany."
The LSEG figures also revealed that the trend was slightly mitigated due to higher lignite availability in this area.
LSEG data shows that French baseload electricity for the day ahead is at 87.1 Euros ($100.72 per megawatt-hour (MWh), a decrease of 3.4% at 0730 GMT.
After a close of 143.8 euros/MWh, the equivalent German position wasn't traded.
LSEG data indicated that the German wind power production was expected to drop by 2.1 gigawatts to 6.9 GW Wednesday. The French output is projected to decrease by 1.4 GW and reach 5.2 GW.
Both countries are expected to see a slight increase in solar power production.
The French nuclear capacity increased by two percentage points overnight to 66%.
EDF's nuclear operator has increased its estimates for the full-year nuclear output to 365-375 Terawatt Hours (TWh), putting 2026 at 350 tWh and 2027 at 390 tWh.
In terms of demand, Germany was expected to remain largely unchanged at 57.8GW while France would see an increase by 500MW to 47.5GW during the review period.
The German baseload contract for the year ahead fell 0.5%, to 86 Euros/MWh. However, its French counterpart did not change after a settlement of just under 58 Euros.
The benchmark contract on the European carbon markets fell 0.7%, to 77.38 Euros per metric ton.
The Federal Statistics Office reported that German inflation in September rose to 2.4%. $1 = 0.8648 euro (reporting and editing by Vera Eckert)
(source: Reuters)