Strong renewable gains outweigh demand rise
PARIS, Aug 19 (Reuters) -European spot power prices fell on Monday, with gains in both wind and solar energy generation expected to eclipse growing demand throughout the region.
German baseload power for Tuesday TRDEBD1 was at 87.50 euros per megawatt hour (MWh) by 0952 GMT, down 21.2% from the price paid on Friday for Monday delivery.
The equivalent French contract TRFRBD1 was at 62 euros/MWh, LSEG data showed. The French Monday contract was untraded on Friday, the data showed.
Residual load is lower in Germany on stronger renewable power supply, with imports also expected, said LSEG analyst Naser Hashemi.
German wind power output was expected to more than double, up 5.8 gigawatts (GW) on Tuesday to 10.4 GW, while French output was forecast to add 2.5 GW to 4.6 GW.
German solar power supply was forecast to gain 2.9 GW to 13 GW, the data showed.
Power from German solar panels is expected to continue to increase steadily to around 15 GW on Thursday, and then fall back to around 14 GW on Friday, LSEG data showed.
French nuclear availability was unchanged at 67% of total capacity. POWER/FR
Power consumption in Germany was expected to be up by 1.8 GW on Tuesday to 53.5 GW while demand in France was projected to rise by 2 GW to 40.1 GW, the data showed.
German year-ahead power TRDEBYZ5 was up 0.2% at 100.40 euros/MWh while the French equivalent, Cal '25, TRFRBYZ5, was up 1.1% at 85.45 euros/MWh.
The price of European CO2 allowances for December 2024 expiry CFI2Zc1 was up 1.1% at 73.35 euros a metric ton.
The return online of three French nuclear reactors and the prospect of strong solar generation, and eventually also strong wind, are all slightly bearish for gas and carbon, Veyt analyst Anders Nordeng said.
The impact should be offset by the reversed fuel-switchingtrend, after the rise in gas prices put coal fired-power affordability ahead of gas, he added.
Reporting by Forrest Crellin; Editing by Emelia Sithole-Matarise
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.
