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 higher 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 €70.02/MWh from €73.37/MWh in the previous day.
• The French day-ahead spot cleared at €33.26/MWh from €56.56/MWh in the previous day.
• Negative hourly power prices were recorded in both countries for delivery for hours between 13-15.
• German wind output is forecast between 4.86-9.69GW over Saturday-Sunday, down from 17.37GW estimated for Friday before being at 5.82GW the next day (Mon) – likely lifting cost from the previous day.
• German power demand is forecast to average between 41.4-44.2GW over 21-22 September, down from 52.4GW forecast for Friday. Demand will then increase to around 52-54.1GW over 23-24 September.
• In contrast, French wind output is forecast at an 16-17% load factors, or 3.12-3.33GW over the weekend – before rising to a 21% load factor, or 4.10GW on 23 September.
• Nuclear availability in France was at 73% as of Friday morning, up from 71% on Thursday, RTE data showed, cited by Bloomberg.
• However, EdF has extended works at its 1.33GW Paluel 4 reactor by four days to 30 Sept.