Rising renewable generation weighs on spot prices
PARIS, Sept 16 (Reuters) -European spot power prices fell on Monday as German wind and solar power supply was projected to rise on Tuesday.
German baseload power for Tuesday TRDEBD1 was at 86.75 euros per megawatt hour (MWh) by 0938 GMT, down 16.2% from the price paid on Friday for Monday delivery.
The equivalent French contract TRFRBD1 was at 24.50 euros/MWh, LSEG data showed. The Monday price was untraded on Friday.
"The outlook (for Tuesday) is mainly characterised by surging solar power production, which will reach above normal levels - and it should remain around such levels for the rest of this week," said LSEG analyst Riccardo Parviero.
German wind power output on Tuesday was expected to add 2.2 gigawatts (GW) to 17.6 GW while French output was projected to rise by 5.7 GW to 10.6 GW, LSEG data showed.
German solar power supply was forecast to more than double, up 5.5 GW to 9.8 GW, the data showed.
French nuclear availability rose by one percentage point to 75% of total capacity. POWER/FR
Power consumption in Germany on Tuesday was expected to rise by 1.6 GW to 55.5 GW while French demand was projected to increase by 800 megawatts (MW) to 43.2 GW, the data showed.
Temporary oversupply and grid congestion are causing a surge in the number of hours when power prices are negative, highlighting a growing need for flexible low-carbon generation and battery storage," said S&P Global Ratings credit analyst Emmanuel Dubois-Pelerin.
"Europe's electricity grids need to ramp up annual capital expenditure to over 100 billion euros to stem congestion," he said.
German year-ahead power TRDEBYZ5 was down 2.1% at 84.30 euros/MWh, a low since April 10. The French equivalent, Cal '25, TRFRBYZ5, fell 3.1% to 68.80 euros/MWh, a low since June 25.
European CO2 allowances for December 2024 expiry CFI2Zc1 shed 1% to 64.35 euros a metric ton.
Combined with high solar renewable generation this week, there is less room for emission-intensive power generation for most of this week, curbing demand for carbon allowances, Veyt analyst Ingvild Sørhus said.
Reporting by Forrest Crellin; Editing by Janane Venkatraman
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