French prompt climbs on wind power drop, demand rises

French day-ahead power prices on Tuesday surged on a forecast for lower wind generation in the region while electricity demand was on the increase.

"After nearly a week of high wind generation, German wind output is expected to decline," said LSEG analyst Naser Hashemi of the biggest market, adding the country is expected to become a net importer during Wednesday demand peaks.

French baseload for Wednesday delivery (TRFRBD1) was at 80.3 euros ($93.65) per megawatt hour (MWh) at 0905 GMT, up 39.6%, LSEG data showed.

The German day-ahead contract (TRDEBD1) was untraded, but higher in a 84-92.5 euros/MWh bid-ask range, having closed at 64.5 euros.

German wind output is expected to fall to 30.5 gigawatts (GW) day-on-day from 43.9 GW, and that in France to 6.2 GW from 8.6 GW, LSEG data showed.

Low pressure fronts are bringing heavy rains while currently below-average temperatures are due to increase slightly in the course of the week, German met office DWD said.

French nuclear availability remained at 71% of total capacity.

On the demand side, power usage in Germany should go up by 300 MW to reach 60 GW on the day-ahead, and consumption in France is set to gain 600 MW to hit 50.5 GW.

German year-ahead baseload (TRDEBYZ6) was down 0.3% at 86.2 euros/MWh.

The equivalent French year-ahead position (TRFRBYZ6) was untraded after closing at 54.7 euros/MWh on Friday.

The European carbon market's benchmark 2025 contract (CFI2Zc1) was up 0.4% at 78.09 euros per metric ton.

The International Energy Agency said that a record wave of new liquefied natural gas (LNG) production capacity coming online until 2030 is set to transform gas market dynamics by strengthening supply security and easing market pressure.

Elsewhere, German business morale rose in October, an Ifo survey showed on Monday, though trade woes continue to cast a pall over Europe's largest economy.

($1 = 0.8575 euros)