French Power Hits Nine-Year High as Cold Weather Boosts Demand
French day-ahead power rose to the highest since 2012, with colder weather boosting demand and lower nuclear output expected to limit supplies.
The price climbed for a fourth day, rising 2.1% to 302.14 euros ($338.79) a megawatt-hour in an Epex Spot auction. Minimum temperatures are set to be below freezing in the east of France on Thursday, with lows in Paris forecast to drop to 0 degrees Celsius (32 degrees Fahrenheit) by Friday.
The ongoing energy crunch in Europe, caused by high gas prices, is pushing up the costs of power generation. Colder weather increases demand because homes in France use electricity for heating, unlike those in Germany and the U.K. that mostly use gas.
“Support from a relatively minor reduction in the temperature forecast for the coming weeks was magnified by current tensions around supplies,” Alfa Energy said in a note.
Supplies are restricted by the lowest French nuclear output in nine days and an ongoing strike at the Cordemais coal plant. Wind generation is forecast to be low through Friday afternoon, according to Bloomberg’s wind model.
The day-ahead price for Germany fell 11% to 243.35 euros in an Epex Spot auction, with higher wind levels expected to curb demand for more expensive coal and gas power.
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