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German spot prices rise due to falling wind supply

German spot prices rise due to falling wind supply

The European spot electricity prices for Wednesday are mixed. On Tuesday, the German spot price rose due to a decline in wind power generation. However, the French spot price dropped because of lower demand forecasts.

The German power price for the day ahead rose by 12.8% at 0958 GMT to 103.75 Euros ($113.59 per MWh).

LSEG data shows that the French baseload rate for the day was 72 euros/MWh - down 13.8%.

Guro Marie Wyller, LSEG analyst, said: "The wind output in Germany decreased further (on Wednesday), and is well below the normal level for this time of year."

LSEG data indicated that on the supply side Germany expected wind output to drop by 3.2 gigawatts to 4.8 GW, and French wind output would be down 1.5 GW to 7.5 GW from day to day.

The French nuclear capacity remained unchanged at 78%.

The office of President Emmanuel Macron announced that France had agreed to provide state-owned EDF a subventioned loan to cover at least half of the construction costs for six nuclear reactors. This is a significant step in France's plan to upgrade its aging nuclear fleet.

LSEG data shows that German electricity consumption will decrease by 320 Megawatts (MW) on Wednesday to 59.3 GW, while France's demand is expected to fall 3.1 GW, to 57.3 GW, as temperatures are predicted to rise 2.6 degrees Celsius in France to 11 degrees Celsius.

The German baseload contract for the year ahead was down by 0.7% to 81.40 Euros/MWh.

The French position for the year ahead fell by 0.9%, to 61.45 Euro/MWh.

The benchmark contract for 2025 on the European carbon market fell 0.1% to 70.06 euros/metric ton.

Anders Nordeng, Veyt analyst, says that a combination of a weak wind and milder temperatures will keep the carbon price neutral in the next week. ($1 = 0.9134 euros) (Reporting and editing by Shrey Biswas; Forrest Crellin)

(source: Reuters)