POWER: French, German Day Ahead Drops on Low Weekend Demand

The German and French day-ahead base-load contracts dropped sharply on the day as lower power demand over the weekend weighed, with firm wind and stable French nuclear adding further pressure. Delivery costs could likely be supported early next week by lower wind coupled with a rise in demand.

• The German day-ahead spot settled at €79.05/MWh from €106.64/MWh in the previous day.
• The French day-ahead spot cleared at €68.67/MWh from €95.19/MWh in the previous day.
• Despite the fall, no negative hourly power prices were recorded in both countries.
• German wind output is forecast between 7.9-10.68GW over Saturday-Sunday, respectively, up from 4.65GW estimated for Friday before dropping to 8.9GW the next day – likely lifting cost from the previous day.
• German power demand is forecast to average between 41.9-45.4GW over 31 August- 1 September, down from 53.4GW forecast for Friday, according to Bloomberg. Demand will then increase between 51.6-53.2GW over 3-4 September. .
• In contrast, French wind output is forecast at an 11-15% load factors, or 2.21-2.97GW over the weekend – before rising to a 13% load factor, or 2.55GW on 2 September.
• French nuclear availability was at 72% of capacity as of Friday morning, unchanged for the past two days, RTE data showed, cited by Bloomberg.
• The 1.33GW Paulel 1 nuclear reactor returned on 30 August.
• However, EdF has extended works at its 910MW Gravelines 4 and Bugey 3 nuclear units by 3 and 10 days, respectively, with the units to return on 3-11 September.