European spot electricity prices for Wednesday delivery dropped steeply as forecasts pointed to a significant increase in wind power across key markets. Market data showed notable falls in the day-ahead baseload contracts for both Germany and France as planned wind output was set to rise substantially.
Price movements
The German day-ahead baseload declined 48.6% to 36 euros per megawatt-hour by 1018 GMT. In France, the equivalent contract sank 68.9% to 16.50 euros per megawatt-hour over the same timeframe.
Generation and demand forecasts
Forecasts indicated a marked increase in wind generation in both countries ahead of Wednesday. German wind power was expected to climb by 20.1 gigawatts to reach 45 gigawatts in total. French wind output was projected to rise by 10.9 gigawatts to 15.5 gigawatts.
Demand projections showed contrasting but modest movement. German power demand was expected to remain flat at 55.9 gigawatts, while demand in France was seen increasing by 1.1 gigawatts to 52.5 gigawatts.
Nuclear availability
French nuclear availability was forecast to be unchanged at 80% of total capacity.
Implications and context
The immediate driver cited in the forecasts is the surge in wind generation capacity expected in both Germany and France. Those anticipated increases in renewable supply coincided with the sharp day-ahead price falls recorded by market contracts. Demand projections showed limited change in Germany and a small rise in France, while nuclear availability in France remained stable at the stated level.
Summary of the data
- German day-ahead baseload: down 48.6% to 36 euros/MWh.
- French day-ahead contract: down 68.9% to 16.50 euros/MWh.
- German wind generation: expected +20.1 GW to 45 GW.
- French wind generation: expected +10.9 GW to 15.5 GW.
- German demand: flat at 55.9 GW; French demand: +1.1 GW to 52.5 GW.
- French nuclear availability: flat at 80% of capacity.
Note on projections
The figures cited are forecasts and market observations for the upcoming delivery period. They represent the expectations used by market participants and reflected in spot contract pricing ahead of Wednesday.