EUROPE POWER-Spot prices fall on more wind, lower usage in Germany -October 19, 2023 at 04:58 am EDT
FRANKFURT, Oct 19 (Reuters) – Prices of European
wholesale power for nearby delivery fell on Thursday on
forecasts of higher wind power output in key producer Germany,
where consumption is also seen dropping.
“Wind power supply is expected to continue rising
tomorrow…In Germany, consumption is expected to drop,” LSEG
analyst Riccardo Parviero said in a note on the region.
German day-ahead baseload power was 17.1% down at
75 euros ($79.02) per megawatt hour (MWh) at 0830 GMT, while the
equivalent French contract was 7.1% off at 74 euros
per MWh.
Wind power supply in Germany is forecast at a likely 29
gigawatts (GW) on Friday, up 4 GW day-on-day, LSEG data showed.
French nuclear power availability was unchanged at 70% of
installed capacity.
Demand predictions were mixed, with German usage seen
shedding 600 megawatt (MW) day-on-day to stand at 57 GW on
Friday, and France adding 900 MW to arrive at 45.3 GW on that
day.
Temperatures were seen falling in both countries.
French spot power prices are driven by weather patterns as
the country relies in large part on electric heating.
On the other hand, in Germany, Europe’s biggest power
market, homes are still mostly heated with gas and oil.
Therefore, its retail power prices are more immune to weather
factors.
The German year-ahead baseload contract was 2.4%
lower at 128.9 euros per MWh.
French 2024 baseload was untraded after a
previous settlement at 140 euros.
German procurement portal Ispex said the latest increase in
gas forwards resulted mostly from potential supply risks due to
tensions in the Middle East and fears of sabotage at
intra-European pipeline infrastructure. This echoed views from
other analysts.
German utility Uniper, which was bailed out by Germany
during Europe’s energy crisis, is embarking on steps to enable
Berlin to pare back its 99% stake, including a reduction of its
share capital.
($1 = 0.9491 euros)
(Reporting by Vera Eckert; Editing by Mrigank Dhaniwala)
