French prompt price rises on demand push, French wind drop
FRANKFURT, Nov 19 (Reuters) -French spot power prices gained on Tuesday on rising consumption, driven by falling temperatures, and with French wind output due to fall sharply, overriding net gains of renewables generation across the region.
LSEG analysis noted stronger electricity usage in Germany and in France, whose power prices are especially sensitive to cold weather forecasts due to the country's high reliance on electric heating systems.
French baseload delivery on the day-ahead TRFRBD1 traded at 111 euros ($117.33) per megawatt hour (MWh) at 0850 GMT, 24.7% above the previous close.
Germany day-ahead baseload TRDEBD1 had not traded after closing at 124 euros but was bid at 116.5 euros.
Power demand was predicted to increase by 1.3 gigawatts (GW) in Germany day-on-day, with the total due to reach 62.7 GW on Wednesday, LSEG data showed. French consumption was projected to go up by 3.3 GW to 60.5 GW.
Temperatures were due to drop by 3.8 degrees Celsius on average to 2 degrees and 6.5 degrees respectively in the two countries in the period under review.
On the supply side, wind power generation in France would lose 6.1 GW to come in at 8.3 GW, LSEG data forecast.
French nuclear availability remained at 83% of total capacity. POWER/FR
German year-ahead power TRDEBYZ5 was up 0.8% at 99.3 euros/MWh while the contract's French equivalent TRFRBYZ5 did not trade after a close at 80.2 euros.
European CO2 allowances with December 2024 expiry CFI2Zc1 shed 0.4% at 69.23 euros a metric ton.
In the related wholesale gas market, Russian exports were still reaching Austria on Monday, despite Gazprom cutting off flows to top importer OMV over the weekend, due to a contractual dispute that has lifted European gas prices. NG/EU
Russian exports to Ukraine were stable on Tuesday, while those for Slovakia edged up.
The higher prices have attracted more diversions of liquefied natural gas (LNG) cargoes into Europe.
($1 = 0.9461 euros)
Reporting by Vera Eckert, editing by David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
