Higher German power demand in peak-load hours combined with lower solar photovoltaic (PV) capacity has pushed the peak spot back above base load this week.
The German peak-load spot for delivery over 27-30 April averaged €23.86/MWh, €0.46/MWh above the average day-ahead base-load for the period.
Only the peak-load spot for delivery on 27 April cleared below base load.
German power demand has increased during peak-load hours this week at an average of 58.50GW, compared with average peak-load consumption of 56.03GW last week, or 52.40GW in week 16. Off-peak demand has increased more slowly to an average of 46.59GW, compared with 45.60GW last week.
The German government implemented restrictions to fight the spread of Covid-19 from 16 March by closing schools and all non-necessary public facilities. This weighed on peak-load power demand as some industries reduced or closed their production activities. The German peak-load spot has been below base load for 26 sessions this month.
But the country began to ease its lockdown restrictions to some extent from last week, with federal states allowing the reopening of some shops and schools. Some industrial activities that closed because of the pandemic have also reopened.
European carmaker Volkswagen has reopened its largest production plant in Wolfsburg this week, and aims to increase its production progressively while implementing government social distancing requirements. Other carmakers such as Daimler and BMW have also reopened their activities but also with restrictions on social distancing.
Lower solar PV output in peak-load hours has also supported the spot. Solar has been at 13.43GW so far this week, compared with 19.75GW a week earlier.
Higher power demand has also boosted the call for fossil fuel burn for the power sector. Combined gas, coal and lignite-fired generation has been at 17.75GW in peak-load hours so far this week, compared with 8.84GW a week earlier. Gas-fired generation has risen the most to 6.5GW, from 2.8GW a week before.
The peak-load spot for delivery tomorrow cleared at €20.19/MWh and again above the €20/MWh base-load spot. But Friday is a public holiday in Germany, which will weigh again on peak-load power demand. Solar PV is forecast to rise to 14.14GW, which is equivalent to a 30pc load factor.
The peak-load contract for 1 May delivery last traded at minus €13.25/MWh in the over-the-counter market this afternoon, Argus data show. The base-load contract last traded at minus €4/MWh.
