September 13, 2012 / 1:01 PM / 5 years ago

CEE POWER-CEE day ahead tumbles on renewables surge

* CEE day ahead trades 8 euros above Germany
    * Wind production forecast above 10 GW
    * Hungarian spot price diverges from Czech Republic,
Slovakia

    PRAGUE, Sept 13 (Reuters) - Central European spot power fell
on Thursday on a surge of wind power in the region as the price
in Hungary diverged slightly from the Czech Republic and
Slovakia, traders said.
    Electricity for Friday delivery tumbled 23 percent to 41.62
euros ($53.64) per megawatt hour in the Czech Republic and
Slovakia on market operator OTE's daily auction where the
Hungarian price came in at 41.71 euros.
    Traders attributed the drop to forecasts for a steep
increase of renewable production in Germany, where the day ahead
price on the EEX exchange was surpising 8 euros below CEE spot
power at 33.33.
    Data from Thomson Reuters Point Carbon forecast wind
production soaring to above 10 GW from about 1.4 GW.
    "We didn't expect 8 euros," one trader said. "We thought it
would be 1 or 2 euros. The wind was not correctly valued in the
German over-the-counter market and sellers pushed the price down
on the exchange."
    Further along the curve, the front month fell 10 cents to
48.40 euros while Cal '13 baseload rose 5 cents to 48.65 euros
on the Prague-based Power Exchange Central Europe.
    Around the region, the benchmark German Cal '13 contract was
steady at 48.79 euros in afternoon trade on Germany's EEX
exchange.
    Poland's energy market regulator URE turned down a request
by gas monopoly PGNiG to raise its gas tariff, leaving
it to cope itself in mitigating the impact of costly Russian gas
purchases on its results. 
    Poland's utilities will have a total of 4.8 gigawatts of
power offline for maintenance on Saturday, data from grid
company PSE Operator showed on Thursday. 
    Day ahead on Poland's power exchange POLPX fell to 178.30
zlotys ($55.96) from 186.66 zlotys.
    Oil futures rose above $116 a barrel on Thursday as
investors awaited a U.S. Federal Reserve announcement, expected
to include more stimulus action to bolster the economy of the
world's biggest oil buyer. 
    EUAs for December delivery, the benchmark EU
carbon contract, had fallen half a percent to 7.91 euros a tonne
at 1157 GMT.
($1 = 0.7759 euros)
($1 = 3.1861 Polish zlotys)

 (Reporting by Michael Kahn, editing by William Hardy)

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