Prompt prices fall as demand drops while supply rises
FRANKFURT, Jan 15 (Reuters) - European spot power prices fell on Wednesday as demand declined in the region while nuclear and wind power levels rose.
LSEG data showed French consumption will fall sharply as temperatures increase in a country that relies largely on electric heating in winter.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
French baseload power for Thursday was down 8.3% at 141.30 euros ($145.62) per megawatt hour (MWh) by 1100 GMT while Germany day-ahead baseload slid almost 33% to 154.50 euros.
German wind power output was expected to remain around 11 gigawatts (GW) on both days, but wind generation in France was projected to jump to 4 GW from 2.2 GW the previous day, LSEG data showed.
French nuclear availability rose by four percentage points to 92% of total capacity.
On the demand side, German consumption was forecast to rise by 600 MW to 65.8 GW on Thursday.
France, meanwhile, is expected to register a 1.6 GW fall to 74 GW, owing to warmer weather, with average temperatures forecast to rise by almost 1 degree Celsius.
Along the curve, German year-ahead baseload gained 2.4% to trade at 94.40 euros/MWh while French 2026 baseload was up 1.4% at 70.10 euros.
Benchmark European carbon permits gained 1.7% to 78.27 euros a metric ton.
German authorities approved approximately 2,400 new wind turbines in 2024, which would add a total of 14 GW of power capacity, an industry report showed.
Political uncertainty ahead of Germany elections next month is having knock-on effects on the broader European energy market, given the country's pivotal role in the EU economy and power markets, Swiss utility Axpo said in a report.
Potential election turmoil was complicating operators' strategies, delaying construction of new gas-fired power capacity, and challenging a national 2030 goal for a coal exit programme, Axpo said.
(Reporting by Vera EckertEditing by David Goodman)