France's demand for more goods and services is driving up prices, while Germany's falls.

On Wednesday, the wholesale market in Europe saw mixed reactions in terms of European prompt power prices. Prices in France rose due to a higher demand while Germany experienced a drop following forecasts for stronger wind speeds.

LSEG's analysis cited the French consumption forecasts as a positive factor. However, it also noted that the availability of brown coal and German gas was a negative influence.

As of 0835 GMT, the price for French baseload was 12% higher than yesterday's rate at 117 Euros ($122.91) per megawatt-hour (MWh).

The German baseload for the day ahead was 8% lower at 126.8 Euros.

LSEG data revealed that Germany expected wind power to increase by 5 gigawatts per day to reach 14,4 GW. This was more than the anticipated 4.1 GW drop in France's wind power to 5.4 GW during the same period.

On Thursday, solar power production in Germany and France is expected to grow. In Germany, it will increase by 1.1 GW to 4.9 GW. In France, it will rise by 600 MW to 2.6 GW.

The French nuclear capacity remained unchanged at 79%.

The data showed that power consumption in Germany will decrease by 500 MW, to 60.8GW for the day ahead.

On Thursday, the average temperature in France is expected to drop 0.9 degrees Celsius, to 7 degrees.

The curve showed that the German baseload for the year ahead was 0.4% higher at 84.6 Euro/MWh. However, the French position, which closed at 64 euros, was not traded.

The benchmark contract for 2025 on the European carbon market was up 0.5% at 72.12 Euros per metric ton.

E.ON Germany, Europe's biggest operator of energy network, has put pressure on the incoming German government to increase returns on energy networks. The company warned that it could only do so if margins are competitive.

The company upgraded its mid-term forecast and expects the core profit to increase up to 9% by 2025. This has led to a spike in the share price.

(source: Reuters)