EUROPE POWER Rising wind supply weighs on spot price

Wind power stations of German utility RWE, one of Europe’s biggest electricity companies are pictured in front of RWE’s brown coal fired power plants of Neurath near Jackerath, north-west of Cologne, Germany, March 18, 2022. REUTERS/Wolfgang Rattay

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PARIS, July 6 (Reuters) – European spot power prices dropped on Wednesday as wind supply in Germany is expected to nearly double, offsetting lower solar production throughout the region and lower French nuclear.

“There is low exposure to the gas price tomorrow as we only expect must-run gas capacity to run,” Refinitiv analysts said.

German baseload power for delivery on Thursday fell 28.4% to 217 euros ($222.27) a megawatt-hour (MWh), as of 0851 GMT.

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The equivalent French price shed 11% to 356 euros/MWh.

Daily wind power output in Germany was forecast to rise 11.3 gigawatts (GW) day-on-day to 21.8 GW on Thursday, while in France it is expected to gain 1.5 GW to 4.8 GW, Refinitiv Eikon data showed.

However, power supply from solar panels is expected to drop on Thursday, down almost 4 GW to 7 GW in Germany and falling 170 megawatts (MW) to 3.4 GW in France, the data showed.

French nuclear availability fell 1.5 percentage points to the much-reduced 46.4% of total capacity as a 900 MW reactor went offline.

Nuclear output may be cut further because of expected prolonged hot temperatures over the summer months, an EDF (EDF.PA) executive told a briefing on Tuesday. read more

Consumption in Germany was seen adding 140 MW to 58.5 GW on Thursday, while demand in France was expected to add 570 MW to 46.2 GW.

Along the curve, German year-ahead baseload power fell 3.5% to 310.25 euros/MWh.

Front month and front quarter prices similarly fell in the country.

The French 2023 baseload contract was untraded after closing at a high of 444.13 euros/MWh on Tuesday.

The French fourth quarter 2022 contract gained 2.2% to 802 euros, less than a euro off the contract high.

European CO2 allowances for December 2022 expiry dipped 0.1% to 83.08 euros a tonne.

Flows of Russian gas to Europe via the Nord Stream 1 pipeline returned to levels seen in recent weeks, while eastbound flows via the Yamal remained at zero, operator data showed.

($1 = 0.9763 euros)

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Reporting by Forrest Crellin; Editing by Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.

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