German power prices jump as heatwave, lower wind lift supply needs
Impact of Weather and Renewable Output on German Power Prices
May 27 (Reuters) - German day-ahead power prices jumped 29% on Wednesday as a heat wave across much of Europe raised cooling needs, while lower wind generation meant that more expensive electricity production sources, such as gas and coal-fired power plants, would be needed to cover demand.
Heatwave Drives Increased Power Demand
Much of Europe is experiencing higher-than-normal temperatures this week, raising demand for air conditioning and cooling systems and adding pressure on power grids.
Record Cooling Degree Days and Persistent Warm Weather
Engie's EnergyScan pointed to exceptionally warm weather as the dominant driver, noting that cooling degree days, a measure of demand for air conditioning, were at their highest level in decades over the period. In addition, the warm pattern is expected to persist through the weekend, keeping demand elevated, while strong solar output should continue to ease pressure on the grid during midday hours.
Renewable Output and Residual Load Forecasts
Drop in Wind Power Output
German wind power output was forecast to fall by 9.7 gigawatts (GW) day on day to 4.4 GW for Thursday delivery, LSEG data showed and residual load, which covers non-renewable power generation sources, was seen rising by 8.2 GW to 23.5 GW, the data showed.
Temperature Forecasts for Germany and France
Temperatures in Germany are expected to be as high as 30 degrees Celsius (86° Fahrenheit) in the south and west on Thursday, and above 30C during midday peaks in much of France, according to data from forecasters DWD and MeteoFrance.
(Reporting by Hugo Lhomedet and Nora Buli; Editing by Bernadette Baum and Thomas Derpinghaus)
