Lower wind supply lifts spot prices
European spot power prices rose on Thursday as wind supply throughout the region was expected to fall.
We expect declining wind power production over the course of the day, but levels will remain above the seasonal average, Refinitiv Eikon analysts said.
German baseload power (TRDEBD1) for delivery on Friday gained 43.4% to 304 euros ($309.78) a megawatt-hour (MWh), as of 0918 GMT.
The equivalent French price (TRFRBD1) rose 8.6% to 391 euros/MWh.
Daily wind power output in Germany was forecast to fall 6.8 gigawatts (GW) day-on-day to 15 GW on Friday, while in France, it was expected to drop 1.2 GW to 3.6 GW, Refinitiv Eikon data showed.
However, power from solar panels in Germany was set to rise 2.9 GW to 9.9 GW day on day.
French nuclear availability rose 1.5 percentage points to 47.9% of total capacity.
French nuclear operator EDF (E2F) and the French government are seeking a new boss for the power utility, a day after France said it would fully renationalise the debt-laden company.
Consumption in Germany was seen falling 1.1 GW to 57.4 GW on Friday, while demand in France it was expected to drop 1.2 GW to 45 GW.
Along the curve, several forward German contracts reached contract highs in early trading. (0#TRDEB:)
German year-ahead baseload power (TRDEBYZ3) gained 8.7% to a contract high of 345.50 euros/MWh.
The French August and September 2022 contracts similarly reached contract highs. (TRFRBMQ2) (TRFRBMU2)
The French 2023 baseload contract (TRFRBYZ3) was untraded after closing at 404 euros/MWh on Wednesday.
European CO2 allowances for December 2022 expiry (CFI2Zc2) added 0.8% to 83.80 euros a tonne.
Natural gas prices look set to remain high, prompting producers to look at the amount they can charge buyers, Spanish gas group Naturgy's chief executive was quoted as saying.
The Sakhalin-1 oil and gas project in Russia will be put under Moscow's jurisdiction, head of the energy committee in Russia's lower house of parliament said.
($1 = 0.9814 euros)