European spot power price fell on Wednesday as wind power production is seen rising.
The heatwave, which affected much of Central Western Europe, is winding down across the region, with average temperatures in France and Germany likely to fall by around 8 degrees Celsius on Thursday compared to June 25, according to LSEG data.
"Prices are expected to continue to drop as wind returns over western Europe and demand continues to drop as temperatures normalize," analysts at Engie's EnergyScan said in a note, adding that loose market conditions will remain until mid-next week.
The German day-ahead baseload power contract (TRDEBD1) was halved to €75.85 per megawatt hour (MWh) at 0745 GMT according to LSEG data.
Wind power on Thursday is expected to rise by 15 gigawatts (GW) to 19.9 GW, while consumption edges down by 1.1 GW to 54.4 GW.
Solar power is also seen up by 5.5 GW at 19.9 GW.
The equivalent French contract (TRFRBD1) was down 43% at €53/MWh. Consumption in France is expected to rise by 1.3 GW to 44.7 GW on Thursday, while wind power also picks up by 1.2 GW to 6.4 GW.
French nuclear availability remained stable, at about 82% of total capacity.
On the forward side, the German 2027 baseload contract (TRDEBYc1) was unchanged at €92.95/MWh.
The equivalent French contract (TRFRBYc1) was untraded.
Benchmark European carbon permits ICEENDEX:ECF1! fell 0.45% to €79.81 a metric ton, according to LSEG data.