Temperatures fall, wind decreases and there is a stronger demand.

The European power price rose on Wednesday as a result of a combination between lower wind production and increased demand, with temperatures falling in line with the seasons.

Naser Hashemi, LSEG analyst, said: "Tomorrow’s outlook is bullish. The main signal comes from the lower wind production in Germany and Central West European countries (CWE)."

LSEG data shows that French baseload day-ahead was up 17.5% at 99.3 Euros ($115.00 per megawatt (MWh) as of 0835 GMT.

The German equivalent price was not traded, but it was bid at 112 Euros/MWh after settling at 103 Euros/MWh.

LSEG data shows that the German wind power production is expected to drop by 6.4 gigawatts to 14.8 GW this Thursday. The French wind power production is also projected to decrease 4.4 GW and arrive at 6.3 GW.

The day-ahead power demand in Germany was forecast to increase by 300 MW to reach 63.0 GW, while in France it would rise by 3.7 GW to 63.2 GW.

The temperature in Germany was forecast to drop by 1 degree Celsius, to 1.6 degrees. In France it would fall by 2.1 degrees to 3.6°.

German baseload for the year ahead fell by 1.2%, to 89.4 Euros/MWh. French year-ahead was not traded after its previous closing at 52.4 Euros/MWh.

The benchmark contract for 2025 on the European carbon market fell by 0.9%, to 80.47 euro per metric ton.

The European Commission announced on Tuesday that they had approved a compensation payment of 1.75 billion euro from Germany to the power company LEAG in exchange for it ceasing coal use by 2038.

LEAG will supply 7 gigawatts (or 10%) of Germany's total lignite power by 2024. $1 = 0.8635 Euros (Reporting and editing by Sonia Cheema; Vera Eckert)

(source: Reuters)