Wind supply surges to surpass demand
Early on Friday morning, spot electricity contracts for German and French power were not yet being traded. However, a significant increase in German wind energy supply is expected to eliminate any price pressure caused by rising German demand.
LSEG data shows that the German and French baseload power contracts for Monday were not traded by 0948 GMT.
LSEG analyst Riccardo Paraviero stated that the German residual load on Monday is expected to drop significantly compared to last week, as wind energy supply is on a surge.
LSEG data indicated that German wind output would increase by 24.3 GW Monday to 29.1 GW. French wind production was also expected to rise 3.7 GW from 6.7 GW.
LSEG data revealed that the German solar power production is projected to drop by 7 GW and reach 14.1 GW.
The data shows that power consumption in Germany will rise by 2.5 GW Monday to 51.3GW while France's demand is expected to drop 2 GW at 45.6GW.
LSEG data shows that temperatures in France are forecast to drop 3.7C from the heatwave temperatures predicted over the weekend to 23.3C.
The French nuclear capacity fell by two percentage points, to 65%. This was due to the planned maintenance of a reactor.
Nuclear operator EDF warned that high water temperatures will affect the production of electricity on the Rhone River in eastern France starting June 25. This is especially true at the Bugey nuclear power plant (3.6 gigawatts).
The German power contract for the year ahead fell 1.7%, to 91.60 Euros per Megawatt Hour (MWh). Meanwhile, the French baseload contract 2025 was not traded with a bid of 66.45 Euros.
The benchmark contract on the European carbon markets rose by 0.7%, to 73.23 Euros per metric ton.
ArcelorMittal said that the energy costs in Germany were too high to allow it to convert its two German plants to carbon-neutral production. (Reporting and editing by Vijay Kishore; Forrest Crellin)
(source: Reuters)
