French prompts climb on demand, wind power drops drop

On Tuesday, French power prices for the day ahead rose due to a forecast of lower wind production in the region and an increase in electricity demand.

After nearly a full week of high wind production, the German wind output will likely decline, said LSEG analyst Naser Hachemi, of the largest market. He added that the country would become a net-importer during the Wednesday peak demand.

LSEG data shows that the French baseload price for Wednesday's delivery was 80.3 euros (93.65 dollars) per megawatt-hour (MWh) as of 0905 GMT, a 39.6% increase.

The German day-ahead was not traded, but it closed at 64.5 Euros. It was higher in the range of 84-92.5 EUR/MWh.

LSEG data shows that the German wind output will fall from 43.9 GW to 30.5 GW per day, while in France it will drop to 6.2 GW per day from 8.6 GW.

German weather bureau DWD reported that low pressure fronts will bring heavy rains, while temperatures currently below average are expected to rise slightly over the next week.

The French nuclear capacity remained at 71%.

The demand for electricity in Germany is expected to increase by 300 MW, reaching 60 GW in the next day, while consumption in France will rise 600 MW, to 50.5 GW.

The German baseload for the year ahead was down by 0.3% to 86.2 Euro/MWh.

After closing Friday at 54.7 Euros/MWh, the equivalent French position for year-ahead was not traded.

The benchmark contract for the European carbon market in 2025 was up 0.4% to 78.09 Euros per metric tonne.

The International Energy Agency stated that the record-breaking amount of LNG production capacity expected to be online by 2030 will transform the dynamics of gas markets, enhancing supply security and easing pressure on the market.

A survey by Ifo showed that the German business climate improved in October. However, trade problems continue to tarnish Europe's biggest economy.

(source: Reuters)