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German, French day-ahead power prices fall as wind output keeps surging

London (Platts)--10 Oct 2017 924 am EDT/1324 GMT


German and French spot power prices dropped further on surging and higher-than expected wind generation in Germany.

Delivery for Wednesday baseload in Germany was down Eur5.25/MWh from Tuesday at Eur32.75/MWh, while the equivalent peakload contract fell Eur4.75/MWh to Eur37/MWh before the 11 am London market close.

EPEX settled Wednesday above OTC at Eur34.26/MWh for baseload and peak at Eur38.88/MWh.

German wind power generation was expected to rise to a load factor of 41%, or 21 GW, for peak hours Wednesday, up from 14 GW Tuesday, data from spotrenewables.com showed.

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Solar output was forecast to tick up 2 GW day on day to 5 GW during peak hours. Combined wind and solar was seen rising by 9 GW to 26 GW during peak times Wednesday.

The weekend contract was last seen 50 euro cent lower at Eur30.50/MWh.

Combined hard coal and lignite-fired availability for Wednesday was seen at 30 GW, while nuclear stood at 10.3 GW, according to EEX Transparency.


FRENCH SPOT PRESSURED


The French day-ahead contract fell Tuesday, weighed down by higher renewables generation in the neighboring German market, although the November contract continued to firm on nuclear power supply concerns in France.

At 11 am London time, the baseload was at Eur55.50/MWh, down Eur2.50/MWh on the day, and peak fell sharply by Eur4.25/MWh to Eur62/MWh.

The EPEX spot auction for the base and the peak was at Eur55.96/MWh and Eur61.10/MWh respectively.

Grid data from French transmission systems operator RTE showed the demand forecast during peak times for Tuesday at 56.6 GW and was set to remain at similar levels for Wednesday.

Data from the spotrenewables showed wind generation during peak times was set to be 2.4 GW for Wednesday, nearly 1 GW higher than Tuesday's 1.5 GW, and solar power output 2.4 GW, up from 1.9 GW.

At midday, maximum nuclear output stood at 38.2 GW, unchanged day on day. hydro generation was at 6.7 GW, gas-fired at 6.1 GW, coal-fired output at 2.3 GW, and solar generation near 2 GW.

On the nuclear supply side, provider EDF delayed the return of both of its 1.5 GW reactors at the Chooz nuclear plant by a week each Tuesday. Chooz-2 was set to return November 2 and is now delayed to November 9, while Chooz-1 has been put back to November 22 from November 15.

EDF also re-scheduled the return of the Paluel-4 reactor, which is set to be the first reactor to return following the ASN-requested file review, postponing it by just two days to next Tuesday, it added.

Amid nuclear concerns, the November base was heard trading at Eur68.50/MWh at 10:23 UK time, higher from Monday's assessment for November base at Eur66.70/MWh


GERMAN CURVE EASES


The German power year-ahead contract was last seen trading at Eur35/MWh, down 15 euro cent following cheaper coal prices. Also, the month-ahead ticked down 10 euro cent to Eur40.15/MWh and the Q1 2018 contract fell 30 euro cent from Monday's closing price to Eur40.05/MWh.

While EUA carbon allowances for December 2017 were steady at Eur7.02/mt, the coal into Europe front-year traded 75 cents lower day on day at $78.60/MWh.




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