Demand increases and spot prices increase sharply as renewables decline.

The price of European prompt electricity rose on Wednesday as the wind and solar energy generation declined while the colder weather pushed up demand.

Riccardo Paraviero, LSEG analyst, said that the future outlook was bullish. The main signal is a significant increase in residual load in Germany.

LSEG data shows that the French day-ahead contract rose by 175% compared to its previous close of 55.0 euros (64.14 dollars) per megawatt at 0820 GMT.

The German equivalent of the position was not traded, but it was bid at 109 Euros/MWh after closing at 95.8 Euros/MWh.

LSEG data showed that the German wind output will fall from 20.6 GW per day to 12.2 GW and in France, it is expected to drop 5.0 GW for a total of 6.0 GW.

The combined solar power output of both markets was expected to fall by 900 MW.

The French nuclear energy availability is stable at 75%.

On the demand front, it was predicted that German consumption would fall by 300 MW on Thursday to 58.8 GW, while France's will add 500 MW, bringing it to 49.4 GW.

Temperatures are expected to drop by between 0.9 and 1.4 degrees Celsius.

German baseload for the year ahead was not traded, but it was bid at 90.6 Euros/MWh after closing at 90.7 euros.

The French position for the year ahead was bid at 55,3 euros after settling at 56.05 euro.

The benchmark contract for 2025 on the European carbon market was down by 0.3%, at 82.04 euro per metric ton.

The EU climate ministers reached a tentative agreement on a 2040 target for climate change early on Wednesday, after lowering the goal during last-minute talks. They were racing to seal the deal before U.N. COP30 in Brazil.

A columnist wrote that Germany's high levels of gas-fired electricity generation are hampering regional efforts to replenish gas stocks ahead of winter peak season. Reporting by Vera Eckert, Editing by Eileen Soreng.

(source: Reuters)