Paris — European spot electricity prices for day-ahead delivery diverged on Wednesday as a heatwave in France is expected to lift electricity demand for cooling, while increased wind power generation will weigh on the German day-ahead contract.
* The French over-the-counter baseload power contract for Thursday delivery gained 4% to 32.50 euros ($36.94) a megawatt hour (MWh).
* The German OTC baseload contract fell 5.9% to 35.60 euros/MWh.
* French electricity demand is forecast to rise by 1.4 gigawatts (GW) day-on-day on Thursday to 53 GW. The average temperature is forecast to rise by 1.1 degrees Celsius compared with the previous day, according to Refinitiv Eikon data.
* A heatwave across most of central and western Europe is expected to push average June temperature in France to record level on Thursday and Friday, according to Meteo France, boosting electricity demand for cooling.
* French power grid operator RTE said France would be able to ensure electricity supply during the heatwave. Its forecast showed peak consumption at 58 GW on Thursday, while available generation capacity is at 77.7 GW.
* French wind power supply will rise by 560 MW to 3.8 GW on Thursday, while solar power supply is forecast at nearly 2 GW, same level as the previous day.
* French nuclear reactor availability fell 4 percentage points to 70.5% of installed capacity on Wednesday following outages are three EDF reactors. The reactors are expected to restart production on Thursday.
* In Germany, the average temperature is forecast to fall by 4.7 degrees Celsius on Thursday, curbing power demand by 690 megawatts (MW) to 62.7 GW, Refinitiv data showed.
* On the German supply side, electricity from wind turbines will rise by 3.1 GW on Thursday to 13.8 GW. German solar power supply will remain steady at over 10 GW.
* On the forward curve, Germany’s Cal’20 baseload power , the European benchmark, added 0.8% to 48.90 euros/MWh by 1023 GMT, tracking gains in carbon emissions prices.
* The French equivalent contract for 2020 delivery was untraded its 51.60 euros/MWh close.
* European CO2 emissions permits with December 2019 expiry rose 2% to a near seven weeks high of 26.95 euros a tonne.
* Hard coal for northern European delivery in 2020 added slipped 0.7% to $63.95 a tonne. ($1 = 0.8785 euros)
* In eastern Europe, the Czech day-ahead contract, which mirrors the German price, fell 7.8% to 38 euros/MWh. The year-ahead position rose 0.3% to 51.70 euros.