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Market Chatter: European Power Prices Jump Over 20% as Heatwave Hits Nuclear, Wind Output

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European spot power prices have jumped by over 20% amid a fifth summer heatwave, with hotter weather expected to limit French nuclear power output, while wind speeds are expected to fall in Germany, Reuters reported Tuesday.

The day-ahead power price in France rose 21.8% to 142.5 euros ($164.35)/megawatt hour. In Germany, the equivalent contract gained 22.8% to 138.50 euros/MWh, the report said, citing LSEG data.

Nuclear power generation in France is projected to decline by 7.3 gigawatts at Wednesday's midday peak, or about 12% of the country's nuclear fleet, the report said, citing EDF data.

Meanwhile, wind generation in Germany is expected to see an 8.1 GW fall to 4.7 GW, down 60% from the seasonal average, it said, citing LSEG data. Heatwaves often result in weak winds, reducing wind generation and increasing reliance on more expensive gas-fired power.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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