Wind supply is falling, and so are spot prices.

Prices in Europe are rising due to a sharp decline in wind energy supply, and demand is also increasing in Germany after the return of the Unity Day holiday.

LSEG data shows that the German baseload contract for Tuesday was 139.75 Euros per megawatt-hour as of 0900 GMT. The equivalent French contract was 85.75 euros/MWh. The Monday contract wasn't traded on Friday.

LSEG data revealed that the French day-ahead price for Friday was 46.60 Euros/MWh. The German equivalent price during the Unity Day holiday was 66.80 Euros/MWh.

LSEG data shows that German wind power production is expected to fall by 23.7 gigawatts on Tuesday to 8 GW. French output will drop from 1.6 GW down to 1.4 GW.

Marcus Eriksson, LSEG analyst, says that the residual load has been lifted due to a significant weakening in renewable supply. Imports are expected into Germany.

The data indicated that the solar power output in Germany is expected to drop by 1.1 GW - 4 GW.

LSEG data indicated that wind power was expected to drop to approximately 7 GW by Wednesday, before rebounding at near 13 GW to reach around 24 GW respectively on Thursday and Friday.

The French nuclear capacity has decreased by one percentage point, to 76%.

LSEG data shows that power consumption in Germany will rise by 1.3 GW Tuesday to 56.6 GW while France's demand is expected to increase by 1.7 GW up to 47.1 GW.

LSEG data show that the German baseload power for the year ahead rose by 1.6%, to 87.90 Euros/MWh. The French equivalent grew by 1.9% to 59.35 Euros/MWh.

Analysts at Engie EnergyScan predict that temperatures will begin to rise on Tuesday, and the dry weather will continue. Solar output should also increase throughout the week.

The benchmark contract on the European carbon markets rose by 0.3%, to 79.42 euro per metric ton. (Reporting and editing by Tasim Zaid; Forrest Crellin)

(source: Reuters)