German rates fall, French prices rise amid weather shifts
FRANKFURT, Nov 27 (Reuters) -European prompt power prices on Wednesday showed diverging directions, with Germany's falling on higher wind generation and France's going up on prospects for colder weather, which boosts the country's electric heating demand.
LSEG analysis spoke of bearish signals, citing Germany wind power supply as the guiding factor which will prompt net exports out of the country on the day ahead. LSEG also noted decreasing lignite and gas availability, among other factors.
German day-ahead baseload power TRDEBD1 was 21.8% down at 97 euros ($102.00) per megawatt hour (MWh) at 0940 GMT, LSEG data showed.
The equivalent French con
tract TRFRBD1 was 28.4% up from the close at 105 euros/MWh.
Supply-wise, German wind power output is projected to gain 12.6 gigawatts (GW) on Thursday to arrive at total output of 35.9 GW, LSEG data showed.
French nuclear availability rose three percentage points to stand at 85% of total capacity. POWER/FR
On the demand side, power consumption in Germany is forecast to shed 500 MW day-on-day, reaching 62.3 GW on Thursday, while French demand is expected to ease by 500 MW also, hitting 56.0 GW.
Along the forwards curve, German year-ahead power TRDEBYZ5 was 0.5% down at 97.8 euros/MWh, while the French 2025 baseload contract TRFRBYZ5 fell 2.4% in one trading move only, standing at 77 euros/MWh.
European CO2 allowances for December 2024 CFI2Zc1 lost 1.7% to trade at 68.08 euros per metric ton.
German Economy Minister Robert Habeck wants subsidies to counter rising electricity network fees, as consumers bear the brunt of high energy costs. However, after the collapse of the Berlin government, the proposal faces uncertain prospects.
German state lender KfW will provide a 24 billion euro loan to help develop a future hydrogen network in the country, at a time when companies warn the technology will take longer than expected to take off.
($1 = 0.9510 euros)
Reporting by Vera Eckert, Editing by Tasim Zahid
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