Spot prices lifted by plummeting wind supply
PARIS, Sept 11 (Reuters) -European prompt power prices for Thursday jumped as German wind supply was expected to fall to less than half of Wednesday's forecast levels.
German baseload power for Thursday TRDEBD1 was up 31.9% at 114 euros ($125.86) per megawatt hour (MWh) at 0828 GMT.
French day-ahead TRFRBD1 power rose 39.1% to 73 euros/MWh.
German wind power output is expected to plunge 13.8 gigawatts (GW) on Thursday to 6.9 GW, while French wind power output is expected to shed 3.3 GW to 4.6 GW, LSEG data showed.
Solar power supply in Germany is seen up 3.2 GW to 9.6 GW, according to the data.
"(Thursday's) signal is decisively bullish, mainly driven by plummeting wind. Given the fundamental situation, Germany is expected to turn to net imports," LSEG analyst Riccardo Parviero said.
Residual load is considerably higher throughout the region, though French nuclear availability is ramping up, covering this need, he added.
French nuclear availability rose two percentage points to 71% of total capacity. POWER/FR
Power consumption in Germany is expected to dip 290 megawatts (MW) to 55.9 GW on Thursday, while demand in France is projected to tick down 180 MW to 44.2 GW, LSEG data showed.
German year-ahead power TRDEBYZ5 edged up 0.1% to 87.60 euros/MWh, while the French 2025 baseload contract TRFRBYZ5 dropped 2.1% to 73.90 euros/MWh.
European CO2 allowances for December 2024 CFI2Zc1 rose 1% to 65.55 euros a metric ton.
Gas and carbon prices have had an unsteady correlation over the past weeks but with the narrow gap between fuel switching prices and the current carbon permit price, carbon will likely take direction from gas, said Veyt analyst Henry Lush.
($1 = 0.9058 euros)
Reporting by Forrest Crellin; Editing by Mark Potter
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.
