Europe Power: Prompt prices fall on forecasts for more wind supply

European Energy Exchange AG

10/01/2024 09:46

FRANKFURT, Jan 10 (Reuters) - European spot power prices
fell on Wednesday in response to expectations for higher wind
volume in the region that overrode the effect of increased
demand.
    "The increase in German consumption (is happening) at the
same time as an increase in wind power supplies," LSEG analyst
Riccardo Parviero said in a note, also flagging increases in
coal-burning power capacity that have boosted supplies.
    German baseload power for Thursday  TRDEBD1  was down 4.0%
at 109.0 euros ($119.32) per megawatt hour (MWh) by 0927 GMT.
French day-ahead  TRFRBD1  power fell 4.9% to 107.0 euros/MWh.
    German wind power output was expected to rise 1.1 gigawatts
(GW) day-on-day to 7.3 GW on Thursday, while France was
predicted to more than double wind production to 6.7 GW in the
same period from 3.1 GW, LSEG data showed.
    French nuclear availability remained at 86% of installed
capacity.  POWER/FR 
    Power consumption in Germany is expected to add 600 MW to
reach 64.1 GW on Thursday as extremely cold weather with
temperatures below zero grips the region. 
    Only in the second half of the week will daytime levels go
slightly above zero, said German met office DWD. 
    French day-ahead usage was anticipated to come in at 75.6
GW, up 2.7 GW from Wednesday and outstripping even German power
demand, although it has a smaller population, as many households
in France rely on electric heating.
    Along the curve, German year-ahead baseload  TRDEBYZ5  was
down 0.8% at 87.8 euros/MWh, while the equivalent French
contract  TRFRBYZ5  lost 2.3% to 82.1 euros.
    European CO2 allowances for December 2024  CFI2Zc1  shed
1.9% to 70.61 euros a metric ton.
    The European Energy Exchange on Tuesday published details of
a new forwards market product from March 25, when it will
introduce Zonal futures for 12 bidding zones in the Nordic
region.
    It will also extend available expiries for existing EEX
Nordic Power Futures.
    ($1 = 0.9135 euros)

 (Reporting by Vera Eckert; Editing by Jan Harvey)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654))