* Day-ahead prices up on weak wind, solar output
* Hot temperatures to stay in place next week
* Forward power curve sags on lower coal prices
FRANKFURT, Sept 8 European electricity prices
for day ahead delivery rose on Thursday as weak renewable
production squeezed power supply and more than offset expected
reductions in demand ahead of the weekend.
Further out along the power curve, however, prices were hit
by lower coal prices, which pushed the German benchmark 2017
baseload power contract to its lowest level in six weeks.
Short-term market data from Thomson Reuters showed that
German wind power output will fall 0.6 gigawatts (GW) day-on-day
to a low 2.7 GW and solar will drop 0.8 GW to 6.6 GW.
German baseload power for Friday delivery rose 1.4
euros a megawatt hour to 31.8 euros ($35.92)/MWh.
The equivalent French contract rose 75 cents to 37
Power consumption in Germany is expected to fall by 1 GW and
in France by 0.8 GW day-on-day to Friday.
But temperatures are stable at high late-summer levels of 20
to 21 degrees Celsius in Germany and more than 21 in France,
underpinning demand for air conditioning well into next week.
Prices along the forward power curve fell along with those
of coal while carbon and oil posted gains.
European coal prices for 2017 dropped 1.3
percent to $57.5 a tonne.
The German Cal'17 baseload power contract fell 30
cents to 25.45 euros/MWh, its lowest since May 27, while the
equivalent French contract fell 1 euro to 30.5 euros/MWh
German power procurement company Ispex said in a research
note it expected a short-term stabilisation of power prices but
tied this to the direction of coal and oil. Many industrial
bilateral power contracts are renegotiated in September.
Oil prices rose more than 1.5 percent after U.S. industry
data showed a large drawdown in crude stocks, reflecting the
temporary impact of an Atlantic storm.
Front-year EU carbon allowances gained 0.8 percent
to reach 4.04 euros a tonne.
In eastern European power, the Czech year-ahead position
dropped 25 cents to 26.25 euros.
The Czech spot price for day-ahead was up 2.4 percent at 33
euros/MWh, boosted by lower capacity at export-oriented reactor
CEZ, its operator, said unit 2 stopped production late on
Wednesday and might be offline for two weeks for checks. The
block had only rejoined the grid on Tuesday after maintenance.
Temelin's unit 1 still is switched off for its own scheduled
($1 = 0.8852 euros)
(Reporting by Vera Eckert; editing by David Clarke)