Wind retreat, rising demand lift prompt prices
FRANKFURT, July 17 (Reuters) -European spot power prices gained on Wednesday as wind supply was expected to fall and demand was increasing in parts of the region.
LSEG analyst Francisco Gaspar Machado noted an "increase in residual load in Germany due to lower wind output, despite higher solar output. Residual load also increases in the rest of Central West Europe."
Residual load refers to how much a conventional power plant has to operate to meet demand after accounting for variable supply such as wind and solar.
German day-ahead baseload power TRDEBD1 was up 33.1% at 0805 GMT at 93.5 euros ($102.02) per megawatt hour (MWh).
The equivalent French contract TRFRBD1 gained 16.2% at 79.0 euros/MWh.
German wind power output is projected to collapse to 3 gigawatts (GW) on Thursday after 15.9 GW are expected to come in on Wednesday, LSEG projections showed.
French nuclear availability was unchanged at 68% of capacity. POWER/FR
Power consumption in Germany is forecast to rise by 300 MW day-on-day to 54.1 GW while French demand is expected to stay flat at 44.2 GW.
German year-ahead baseload TRDEBYZ5 added 0.6% at 89.0 euros/MWh while the French 2025 baseload contract TRFRBYZ5 was untraded after closing at 74.0 euros/MWh on Monday.
European CO2 allowances for December 2024 CFI2Zc1 were 0.2% down at 67.88 euros a metric ton.
The European Energy Exchange (EEX) traded 6,047 TWh of power globally in the first-half of 2024, 47% more than in the same 2023 period, citing the increasingly important need to hedge renewable electricity and long-term trades.
Within the total, flagship European derivatives increased by 78% year-on-year to 3,951 TWh.
Annual power purchasing contracts agreed by German businesses in the first half of 2024 and starting from July 1 were on average 26% down year-on-year in price, said lobby and consultancy VEA.
VEA had analysed prices in 50 regional grid areas covering the bulk of the country.
($1 = 0.9165 euros)
Reporting by Vera Eckert, editing by Sharon Singleton
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