Latest News

German spot prices rise on declining renewable supply

German baseload day-ahead power prices increased compared to last Monday, as the renewable energy supply is expected fall and demand to rise. The French contract dropped due to higher wind power production.

LSEG data shows that the German baseload electricity contract for Tuesday is 113.90 Euros per megawatt-hour, as at 0832 GMT. The equivalent French contract is 29 euros/MWh.

The Friday contracts for both Mondays were not traded. Last Monday, the German contract closed for 89.10 euro/MWh and the French contract closed for 75.90 euro/MWh.

Marcus Eriksson, LSEG analyst, says that residual load in Germany is expected to increase on all basis, and imports will be anticipated.

LSEG data indicated that the German wind output is expected to drop by 3.1 gigawatts to 6.7 GW while French output will increase by 2.1 GW up to 9.3 GW.

The French nuclear capacity has increased by one percentage point, to 74%.

The utility announced on its website that workers at France's EDF would go on strike starting late Monday night for three days. This is part of a number of strikes planned this month to protest proposed budget cuts from the government.

On Tuesday, power consumption in Germany will rise by 1.6GW to reach 53.8GW. In France, demand is expected to increase by 1.6GW to 44GW.

Analysts at Engie Energy Scan stated that temperatures are expected to be around normal levels throughout the week. This will gradually reduce power demand before it rises again over the weekend.

LSEG data shows that the German baseload power for the year ahead rose by 1.7%, to 85.10 Euro/MWh. The French equivalent increased by 0.2%, to 59.80 Euro.

The benchmark contract on the European carbon markets rose by 1%, to 73.78 Euros per ton. (Reporting and editing by Susan Fenton; Forrest Crellin)

(source: Reuters)