Prices drop due to falling demand and temperature increases

The European power price fell on Wednesday, as the consumption is expected to drop sharply due to rising temperatures.

LSEG's analysis showed that German exports of power were down, while the availability of thermal power stations was not significantly different.

LSEG data shows that the French baseload electricity for Thursday was 101 euros ($105.38 per megawatt-hour (MWh) at 0945 GMT. This is a 15.8% decline.

The German base rate for the day-ahead was 103.3 euros. This is down 8%.

LSEG data forecast that the German wind power production would increase by 3 gigawatts per day to 26.2 GW and in France, it was up 2.1 GW to 8.4 GW.

The French nuclear capacity remained at 82%.

LSEG data showed that power consumption in Germany will fall by 400 MW on Thursday to 64.2 GW and in France by 3.5 GW to 58.0 GW.

On Thursday, temperatures in the area are expected to increase by 4 degrees Celsius on average.

The German power contract for the year ahead was down 1% at 89.2 Euro/MWh, while the French baseload contract was down 1.5% at 65.5 Euro.

Dutch gas for the first month recovered some of its losses on Tuesday evening after falling to a four-week low. This was due to indications that the European Commission is working on more flexible storage goals.

The price increase was a result of concerns expressed by some EU governments about the impact of strict deadlines on prices.

The market has also been affected by other factors: the continued rise in renewable energy and LNG landing capacity, the falling demand in an industry that is suffering in a recession and the meetings between U.S. officials and Russian officials about ending the war in Ukraine.

The benchmark carbon contract in Europe was down 1.5% to 74.64 euro per metric ton. $1 = 0.9584 Euros (Reporting and editing by Vera Eckert)

(source: Reuters)