French spot drops as expected wind and nuclear output increases

French spot electricity rates for Thursday dropped as the wind energy supply in France is expected to increase amid lower demand forecasts. One nuclear reactor will also be expected to re-start.

By 0927 GMT, the French baseload for the day ahead fell by 15.6% and was 91?euros (106.02 dollars) per megawatt-hour (MWh).

After closing Tuesday at 119.25 Euros/MWh, the German baseload day-ahead was not traded.

Riccardo Paraviero, LSEG analyst, says that the outlook for Thursday is negative due to higher wind supply and lower consumption.

He added that "Crucially," wind power is expected to be high during evening peak hours. This will reduce Tuesday's evening spike.

LSEG data indicated that German?wind energy generation would increase by 900 megawatts on Thursday to 24.5 GW. Meanwhile,?French?wind power was up 6.6 GW at 48.7 GW.

RWE announced on Wednesday that it had agreed to sell a half stake in the Norfolk Vanguard 'West and East Offshore Wind Projects'?to KKR. The German utility was one of the top bidders in a landmark British renewables auction.

The French nuclear availability remained unchanged at 85%, while Belleville 1 is expected to be back online on Thursday.

LSEG data shows that the power demand in Germany fell by 1.3?GW to 65.1 GW while French consumption dropped by 850 MW, or 63 GW.

The week-ahead prediction has been revised upwards and now expects temperatures to be around seasonal norms.

They said that very low wind conditions are also expected for next week. This should have a positive effect on the markets.

The German baseload for the?year ahead was not traded with a price of 86 euros/MWh. The French baseload for 2026 was also untraded, after it closed at 51 euros/MWh Tuesday.

Benchmark European carbon permits fell 0.4%, to 90.38 euro per metric ton. $1 = 0.8584 Euros (Reporting and Editing by Forrest Krellin)

(source: Reuters)