EUROPA POWER prompt tightly mixed, wind power falls, demand rises
FRANKFURT, Jan 23 (Reuters) – European spot energy prices for tomorrow delivery were somewhat mixed at midday on Monday, with lower wind power output expected for Germany and higher demand expected in the region.
Refinitiv analysts said that conventional generation from coal, gas and nuclear power is increasing and can partially meet higher consumption.
German baseload for Tuesday was at 202 euros ($220.14) per megawatt-hour (MWh) at 1105 GMT, up 1% on Monday’s delivery price.
At EUR 204/MWh, the French equivalent was 0.5% below Monday’s French delivery price.
Daily wind production in Germany is expected to drop to 5.9 gigawatts (GW) on Tuesday, a drop of 500 MW that day.
French nuclear availability was a percentage point higher than Friday at 73% of total capacity.
France’s nuclear watchdog ASN said the safety of the reactor fleet will remain at a “satisfactory” level in 2022, despite some fragility.
On the demand side, energy consumption in Germany was forecast at 63.2 GW on Tuesday, up 2 GW, and France was forecast to rise from 2.9 GW to 74.7 GW.
On the curve, the German base load for delivery in 2024 decreased by 2.7% to 184 euro/MWh.
The corresponding French contract was not trading at EUR 207.5 after the close.
European CO2 certificates at the end of December 2023 decreased by 1.1% to EUR 84.14 per tonne.
Germany said on Friday it has drawn up plans for offshore wind power to reach 30 GW of capacity by 2030.
The European Union’s gas price cap, introduced in February, could affect financial stability and limit liquidity in Europe’s stock exchange-traded gas markets, the gas regulator said. financial markets ESMA in a draft report shared with Reuters.
It seems likely that market participants will switch to trading on contracts or places where the gas price cap does not apply – on platforms outside the EU or “over-the-counter”, he said.
Analysts said the associated liquidity implications could spill over into other energy and financial markets.
($1 = 0.9176 euro) (Reporting by Vera Eckert Editorial by Mark Potter)