Prices falling in Germany, rising in France, which retains discount
FRANKFURT, Oct 9 (Reuters) -German spot power prices for Thursday fell on Wednesday on expectations of higher wind power supply and lower demand, while those in France increased from a lower base, still retaining a discount to the neighbouring market.
German day-ahead baseload power TRDEBD1 was down 29.5% at 57.5 euros ($63.01) per megawatt hour by 0800 GMT, LSEG data showed. The equivalent French contract TRFRBD1 added 37.1% to 49.0 euros/MWh.
Residual load - the amount of electricity demand that needs to be filled by conventional sources once renewables are accounted for - is decreasing in Germany, with exports expected out of the country, said LSEG analyst Marcus Eriksson.
The country's reduced availability of hard and brown coal capacity is being replaced by more gas capacity, he added.
German wind power output is projected to rise by 4.1 gigawatts to 20.2 GW on the day-ahead, while French supply is expected to drop by 4.2 GW to 6.5 GW, LSEG data showed.
Latest French nuclear availability gained 5 percentage points to reach 74% of total capacity. POWER/FR
Power consumption in Germany is forecast to dip by 500 MW to 56.3 GW on Thursday, while French demand is expected to lose 100 MW to 46.5 GW.
Along the forwards curve, German year-ahead power TRDEBYZ5 was down 0.7% at 84.05 euros/MWh, while French 2025 baseload TRFRBYZ5 was untraded after closing at 71.85 euros/MWh.
European CO2 allowances for December 2024 CFI2Zc1 jumped 2.2% to trade at 61.61 euros a metric ton.
The year 2024 will go down as that of peak energy emissions, said the Energy Transition Outlook from assurance provider DNV.
The main reason is China installing more solar and wind and cutting its dependency on highly CO2 polluting coal, while also stepping up exports of green technologies.
Germany's liquefied natural gas terminals are an insurance policy against a shortage of natural gas if transit through Ukraine is cut off to European countries without coastal access, the Berlin economy ministry said.
($1 = 0.9125 euros)
Reporting by Vera Eckert; Editing by Jan Harvey
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.
