Germans indicate less wind, while the French are down on demand.

The French power price fell Wednesday due to lower usage and milder weather. In Germany, the prices rose as a result of slower wind speeds.

Riccardo Paraviero, LSEG analyst, said that the increasing German consumption is another factor that will be positive for this region.

At 0930 GMT, the French baseload price for the next day was 78.5 euros (84.09 dollars) per megawatt-hour (MWh), a 15.6% decline.

German day-ahead electricity had not traded, but was offered at 90.5 Euros after closing at 83.5 Euros.

LSEG data revealed that Germany expected wind output to drop by 7.8 gigawatts to 14.7 GW and solar output to fall by 1 GW to 10.4 GW in the day ahead.

The French nuclear capacity remained unchanged at 79%.

The power demand in Germany was expected to increase by 800 MW, reaching 60.9 GW. In France, it was predicted to decrease by 2.9 GW to 55.9 GW.

The average temperature in Germany will rise by 1.5 degrees Celsius to 7.3 degrees Celsius on Thursday. In France, the temperature will increase by 1.7 degrees to 11.1°C, suggesting that heating needs are less important than they were in recent icy weeks.

On the curve, Germany’s baseload contract for the year ahead fell 0.9%, to 82.0 Euro/MWh. In France, it was almost unchanged at 62.1 Euro.

The benchmark contract for the European carbon market 2025 increased by 1%, to 69.22 Euros per metric ton.

Parties hoping to form Germany’s next government agreed to create a 500-billion-euro infrastructure fund and overhaul the borrowing rules as part of a seismic shift in spending to revamp Germany’s military and revive its growth after two years contraction.

On Thursday, the EU leaders will meet to discuss proposals for mobilizing up to 800 billion Euros to rearmament.

Policymakers are also concerned with reviving the economy and helping to overcome economic paralysis. Reporting by Vera Eckert and editing by Sonia Cheema.

(source: Reuters)