German spot soars on forecast of drop in wind generation
The German over-the-counter baseload contract for Thursday delivery surged nearly 40 percent to 30.75 euros ($35.02) a megawatt hour (MWh).
New Delhi: The German spot electricity contract for next-day delivery posted strong gains in wholesale trade on Wednesday, lifted by a forecast of a drop in power generation from wind turbines, while demand was expected to remain stable.
The German over-the-counter baseload contract for Thursday delivery surged nearly 40 percent to 30.75 euros ($35.02) a megawatt hour (MWh).
The equivalent French position added 0.7 percent to 33.75 euros/MWh.
German wind power generation will decrease by 3.8 gigawatts (GW) on Thursday to 34.6 GW, Refinitiv Eikon data showed.
Power generation from German solar panels will drop by 1.7 GW to 2.2 GW on Thursday, supporting prices.
Electricity demand in Germany will rise marginally by 190 megawatts to 69.2 GW. The average temperature in Germany will drop by 0.4 degrees Celsius on Thursday.
In France the picture was expected to be mixed. Consumption is forecast to dip slightly by 140 MW on Thursday to 61.8 GW. Average temperature in France will rise by nearly 1 degree Celsius.
On the French supply outlook, wind power generation will add 330 MW day-on-day on Thursday to 9.7 GW, while solar power generation will fall by 430 MW to 840 MW.
French nuclear availability was steady at 84 percent of total capacity.
Along the year-ahead curve, contracts dipped, tracking the fall in carbon emissions prices.
The German Cal ’20 baseload fell 0.2 percent to 47 euros/MWh by 1040 GMT.
German utility E.ON said on Wednesday it had sold forward the bulk of its nuclear generation volumes for 2019 and half of those for 2020 at prices below the current wholesale market.
French year-ahead power was down 2.1 percent at 50.40 euros/MWh.
European December 2019-expiry CO2 emissions permits slipped 0.3 percent to 22.25 euros a tonne.
Hard coal for northern European delivery in 2020 was untraded at its $76 a tonne close.
In Eastern Europe, the Czech Wednesday baseload, mirrored the German spot, adding 19.6 percent to 33.5 euros/MWh.
Source: reuters
