European spot electricity prices rose on Tuesday amid expectations of a fall in wind power generation, while consumption remains stable.
Weaker wind generation in Germany is driving the price increase, lifting residual load and tightening the German power balance despite slightly softer demand, LSEG analyst Naser Hashemi said. Higher residual load across the region is providing further support.
The German day-ahead baseload contract (TRDEBD1) rose 37.8% to €97.50 per megawatt hour at 0858, according to LSEG data.
Wind power generation for Wednesday in Germany is seen down 11 gigawatts (GW) at 24 GW, while consumption and solar power production are expected to be relatively unchanged, at 53.1 GW and 16.6 GW, respectively.
The equivalent French contract (TRFRBD1) was up 24.8% at €92.5/MWh.
The scorching conditions in France are expected to continue through Thursday, with night temperatures expected to rise while maximum temperatures remain high, French weather service MeteoFrance said.
"France still manages to keep it under control as its nuclear output climbs to a 3-month high, reaching 46 GW," analysts at Engie's EnergyScan said in a note.
French nuclear availability remained stable, at about 90% of total capacity.
On the forward side, the German 2027 contract (TRDEBYc1) edged up 1.1% at €95, tracking gas prices, partly due to reports of renewed tensions in the Middle East.
The equivalent French contract (TRFRBYc1) was up 0.3% to €58.20/MWh.
Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting through the Strait of Hormuz on Monday night, Axios reported, citing two U.S. officials.
The European carbon market's benchmark 2026 contract ICEENDEX:ECF1! fell 0.9% to €81.07 per metric ton.