German spot slightly up, French sees sharp gains
FRANKFURT, July 3 (Reuters) -European spot power prices rose on Thursday, with the German market slightly higher due to a drop in wind supply, and France posting strong gains, narrowing its discount to Germany.
LSEG research noted power demand increases in regions surrounding Germany among bullish factors, while higher solar output expectations in Germany and France weighed the supply-demand balance in the other direction.
LSEG analyst Marcus Eriksson also wrote that brown and hard coal-powered capacity was improving while gas-fuelled availability was reduced.
German day-ahead baseload TRDEBD1 was 1.2% up at 0800 GMT at 43.5 euros ($46.95) per megawatt hour (MWh).
The French equivalent contract TRFRBD1 increased by 113% at 28.8 euros/MWh.
France's price discount compared to its neighbour stems from an oversupply of nuclear and hydro power, coupled with limited cross-border transit capacity.
German wind generation is likely to fall to 22.7 gigawatts (GW) on Friday, down 1.8 GW from Thursday, and France stands to see wind output of 3.4 GW, down from 6.8 GW, LSEG data showed.
Solar power, on the other hand, should likely rise to 13.8 GW in Germany, up 1.9 GW, and to 4.6 GW in France, up 0.6 GW.
French nuclear availability was unchanged at 69% of the total capacity. POWER/FR
Consumption in Germany will lose 1.6 GW day-on-day to come in at 53.4 GW on Friday.
Forward curve prices changed marginally, with German year-ahead baseload TRDEBYZ5 at 93.0 euros/MWh, down 0.4%.
France's equivalent was untraded after a close at 74.9 euros TRFRBYZ5.
Fuels and carbon futures market were quiet as trading was thinned by the U.S. Independence Day holiday.
European CO2 allowances for December 2024 expiry CFI2Zc1 edged 0.1% up at 70.84 euros per metric ton.
Elsewhere, Germany has just awarded 2.4 GW of new onshore wind capacity in its second 2024 tender at 73.3 euros/MWh, the regulator said.
($1 = 0.9265 euros)
Reporting by Vera Eckert; Editing by Anil D'Silva
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