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France drops to half the level of Germany

France drops to half the level of Germany

The German wholesale power market traded at a higher price on Wednesday due to lower forecasts for wind production. Meanwhile, the French equivalent price fell sharply amid falling demand and was trading at only half Germany's price.

LSEG analyst Naser Hashemi discussed bearish factors across the region. He cited forecasts of weaker consumption, and added that German gas supply has improved.

The German power price for the day ahead was 1.7% higher at 105.5 Euros ($115.01 per MWhr) at 855 GMT.

The French baseload for tomorrow fell 17.7%, to 58.0 Euro/MWh.

LSEG data revealed that Germany expected wind output to drop by 200 MW on Thursday to reach 5.6 gigawatts. France and Germany, however, were expecting to receive more solar energy on this day.

The French nuclear capacity remained unchanged at 78%.

On the day ahead, Germany's power demand was expected to drop by 500 MW and reach 58.7GW. France is forecast to lose 2.4 GW to 54.5GW.

The average temperature is expected to rise by 1-2 degrees Celsius during the period being reviewed.

The German baseload contract for the year ahead was up 3.7% to 85.1 euros/MWh.

After a close of 63.3 euros, the French year-ahead bid was 62.8 euros.

The benchmark contract for the European carbon market 2025 has increased by 1.4%, to 72.33 Euros per metric ton.

The German lower house of Parliament approved a landmark change to German debt rules on Tuesday, which will allow billions of dollars for infrastructure, defense and green transition expenditure.

According to AGEB, the industry statistics group, Germany's energy consumption in 2024 will be down 1.1% due to mild weather conditions and a weaker economy. The primary energy consumption totals are now comparable with what western Germany consumed in the 1970s.

(source: Reuters)