FRANKFURT, Jan 9 (Reuters) - French and German week-ahead power prices leapt on Monday as cold weather and the return of industrial demand boosted usage expectations, while the capacity availability outlook in both countries remained relatively tight.
Delivery of baseload power in France was up 47 percent at 90 euros a megawatt hour and the same German contract was up 24 percent at 49 euros/MWh, its discount reflecting Germany’s lower exposure to winter weather and high thermal output.
Temperatures at the weekend in France will be down by 3 degrees Celsius from current levels, while Germany’s will be down 1 percent, Thomson Reuters data showed.
Demand is returning in the region after school and business holidays have ended.
Spot prices for daily delivery this week were highly volatile, representing variable wind supply projections in Germany, traders said.
Uncertainty over a possible closure of RWE’s Gundremmingen C reactor boosted day ahead contracts. (Reporting by Vera Eckert, editing by Louise Heavens)