Lower demand and rising green energy production curb spot prices

The European power prices fell on Wednesday due to a combination forecasts of higher wind and solar production and rising temperatures that weighed on the demand.

LSEG's analysis noted a lower residual load, which would mean that thermal plants do not need to be boosted to match renewable energy output.

LSEG data indicated that the electricity demand for the day ahead will probably fall by 2.1 gigawatts to 65.9 GW in France, and by 200 MW to 65.4 GW in Germany.

LSEG data shows that French baseload day-ahead opened trading at 85 euros (98.36 dollars) per megawatthour (MWh), down by 13.3% from the previous close.

At 0855 GMT, the German equivalent of this position was not traded but had closed at 189 Euros.

On Thursday, the German wind energy output will increase by 18.5 GW and reach 25.7 GW. In France, it is expected to rise by 1.6 GW and hit 7.2 GW.

Overnight, the French nuclear generation capacity fell by two percentage points to 82%.

The temperatures in France are expected to increase by 1.2 degrees Celsius on Thursday to reach 6.1 degrees.

The German baseload year-ahead increased by 0.4%, to 88.2 Euro/MWh.

After a close of 50.2 euros, the French year-ahead was not traded.

The benchmark contract for 2025 on the European carbon market was almost unchanged, at 81.9 Euros per metric ton.

The oil price rose after falling to a low of one month in the previous session. However, an anticipated supply glut and potential peace talks between Russia and Ukraine capped gains.

The International Monetary Fund stated in a recent report that Germany's economic prospects remain limited on a medium-term basis.

The GDP growth is expected to be only 0.2% this year.

(source: Reuters)