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Demand for French spots eases as supply increases

Demand for French spots eases as supply increases

The European power price fell on Tuesday, as wind volumes are expected to increase in the coming days and demand is also expected to decrease due to rising temperatures.

LSEG analyst Florine Eengi predicted net exports for Germany. She also mentioned an increase in solar power.

By 0810 GMT the French baseload electricity contract for Wednesday had reached 34.3 euros ($37.06 per megawatt-hour (MWh), while at that time, the German day-ahead power contract had not been traded after closing at 97.3 euro/MWh.

LSEG data shows that the German wind power production is expected to double on Wednesday to 22.2 gigawatts from 11.0 GW, according to LSEG.

The power consumption in Germany is expected to drop by 400 MW, to 56.5 GW. In France, the demand was predicted to fall to 51.5 GW compared to 51.7 GW.

The French nuclear capacity has increased by two percentage points, to 73%.

The German baseload year-ahead power contract rose 0.1% to 85,4 euros/MWh. Its French counterpart was not traded after closing at 62.3 euro.

The benchmark contract on the European carbon markets was little changed, hovering at 67.92 Euros per metric ton following a close of 67.98 Euros.

Henry Lush, Veyt analyst, saw few immediate negative factors in the carbon markets from policy makers and supply. Prices were above technical support levels.

Data from the ship-tracking company Kpler revealed that the world's biggest thermal coal buyers have slowed down imports in the first quarter 2025. This has led to the lowest quarterly purchase total for three years.

A business survey revealed that Germany's manufacturing sector has shown signs of improvement in March. It was the first time in almost two years that production had increased. $1 = 0.9256 Euros (Reporting and editing by Janane Vekatraman).

(source: Reuters)