Spot prices fall sharply on more renewables, French nuclear supply
FRANKFURT, Aug 20 (Reuters) -European prompt power prices fell sharply on Tuesday as France's nuclear reactor fleet saw a six percentage point increase in its capacity availability and on expectations of higher wind and solar power generation from the region.
"Residual load is lower in Germany on a stronger renewable supply," said LSEG analyst Marcus Eriksson, describing the main factor in a bearish environment for the day-ahead.
He noted, however, some reduced brown coal and gas availability as part of the overall picture.
German baseload power for Wednesday delivery TRDEBD1 was at 56.3 euros ($62.36) per megawatt hour (MWh) by 0745 GMT, down 35.7% from the previous close.
The equivalent French day-ahead contract TRFRBD1 was at 43.5 euros/MWh, down 29.0%.
German wind power output was expected to more than double, up 13.8 gigawatts (GW) on the day-ahead, likely coming in at 23.9 GW, LSEG data showed.
Solar power output was seen rising in both Germany and France day-on-day.
French nuclear availability was at 73% of installed capacity, up from 67 GW on Monday. POWER/FR
Power usage forecasts showed an overall stable picture.
Consumption in Germany was expected to be slightly down by 400 MW, at 53.2 GW, on Wednesday, and that in France was due to rise by 400 MW to 40.5 GW.
Along the curve, German year-ahead baseload power TRDEBYZ5 was level at 100.1 euros/MWh while the same French contract, Cal '25, TRFRBYZ5, edged up 0.3% to 86.0 euros/MWh.
The price of European CO2 allowances for December 2024 expiry CFI2Zc1 nudged up 0.4% to 73.41 euros a metric ton.
German producer prices decreased by 0.8% on the year in July, the federal statistics office said.
($1 = 0.9029 euros)
Reporting by Vera Eckert; Editing by Shounak Dasgupta
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