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Demand outweighs gains in renewable energy and nuclear

On Tuesday, wind and solar energy supply will likely increase throughout the region, offsetting growing demand while French nuclear power supply rises.

LSEG data shows that the German baseload contract for Tuesday had reached 77.75 Euros ($90.77 USD) per megawatt-hour (MWh), while the French equivalent was 45 Euros/MWh.

On Friday, both Monday contracts were not traded.

LSEG analyst Xiulan he said that a general bearish outlook for Germany is expected on Tuesday, as the supply of wind and solar energy increases, with imports into Germany expected throughout the day.

LSEG data indicated that the German wind power production was projected to increase by 2.5 gigawatts to 15.1 GW while French output is expected to decrease by 1.4 GW resulting in 3.6 GW.

The data indicated that the German solar generation is expected to increase by 3.6 GW to 15.1 GW on February 2.

The French nuclear capacity has increased by five percentage points, to 80%.

On Tuesday, power consumption in Germany will rise by 1.6 GW. In France, demand is expected to increase by 1.3 GW.

Analysts at Engie Energy Scan say that the lower French demand for electricity due to the cool weather and higher nuclear availability led to strong exports Monday. The analysts expect the cooler temperatures to continue through the week.

LSEG data show that the German baseload power for the year ahead increased by 0.2% to 85.65 euros/MWh. The French equivalent fell 0.8% to 61.90 euro/MWh.

The benchmark contract on the European carbon markets fell by 0.2%, to 71.23 Euros per metric ton.

The U.S. and the European Union reached a framework agreement on trade on Sunday. It imposed a 15% tariff on the majority of EU goods, half the rate that was threatened. This avoided a larger trade war by making major commitments on EU energy purchases.

(source: Reuters)