As demand falls and supply increases, prompt prices will fall.

The European spot electricity prices dropped on Wednesday, as the demand for power in Europe declined while wind and nuclear power increased.

LSEG data revealed that French consumption would fall as temperatures rise in a country which relies heavily on electric heating during winter.

By 1100 GMT, the French baseload for Thursday had fallen 8.3% to 141.30 Euros ($145.62). In Germany, baseload for Friday was down almost 33% at 154.50 Euros.

LSEG data indicated that the German wind power output would remain at around 11 gigawatts on both days. However, wind generation in France is expected to increase to 4 GW, up from 2.2 GW, as projected by LSEG.

The French nuclear capacity has increased by four percentage points, to 92%.

The German demand was expected to increase by 600 MW on Thursday to 65.8GW.

France is forecast to see a 1.6 GW drop to 74 GW due to the warmer weather. The average temperature is predicted to increase by nearly 1 degree Celsius.

German baseload for the year ahead gained 2.4%, trading at 94.40 Euros/MWh. French baseload 2026 was up by 1.4% at 70.10 Euros.

Benchmark European carbon permits increased 1.7%, to 78.27 Euros per metric ton.

A report from the industry showed that German authorities had approved around 2,400 new turbines by 2024. This would result in an additional 14 GW power capacity.

Axpo, a Swiss utility, said that the political uncertainty surrounding the German elections, which will take place next month, is having a knock-on effect on the European energy markets. This is due to Germany's central role in the EU's economy and power market.

Axpo reported that potential election turmoil could complicate operators' strategies and delay construction of new gas fired power capacity. It would also challenge a national 2030 target for a coal-exit programme. Reporting by Vera Eckert, Editing by David Goodman.

(source: Reuters)