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5 years ago
Europe Power-Spot up on lower renewables supply
June 5, 2012 / 1:41 PM / 5 years ago

Europe Power-Spot up on lower renewables supply

 * Cool weather, less green power support prompt
 * Curve posts gains after previous day's losses
 * EEX stats, economic news reflect bearish picture
 FRANKFURT, June 5 (Reuters) - European prompt power prices
firmed on Tuesday on an expected halving of wind and solar power
output in Germany on Wednesday.	
 "It's a kind of yo-yo effect on the day-ahead market,
yesterday the trend was the opposite for today," one trader
said.	
 Wednesday delivery baseload gained 3.10 euros in Germany to
47.90 euros a megawatt hour. in France, the same position
gained 2.40 euros to 48.90.	
 Weather data showed wind power will likely drop to 2.5
gigawatts (GW) on Wednesday and solar to 5 GW, compared with 5
GW and 10 GW of materialised capacity usage on Tuesday.	
 This will result from low pressure fronts curbing sunshine,
accompanied by cool temperatures and rain, which will lift
demand.	
 In France, EDF's 900 MW Gravelines 1 nuclear reactor stopped
for an unplanned outage late on June 4, power grid RTE showed on
its website, providing no reason or restart date. 	
 The effect of plant outages elsewhere on supply were
limited.	
 Power curve prices rebounded from their new lows on Monday
without big volumes or driving factors, as UK fuels market
remained closed.	
 With Britain still shut for the Queen's Diamond Jubilee
holiday, there was no input from OTC gas and coal markets.
Exchange traded EU carbon rights edged a little higher.	
 German Cal '13 baseload power was 10 cents higher
at 48.65 euros and the equivalent French contract was 20 cents
higher at 49.70 euros. Both contracts are at their lowest levels
in 18-1/2 months.	
 Oil prices slid towards $98 a barrel as demand expectations
were hit by another round of poor data from the euro zone and
comments by the International Energy Agency (IEA) that oil
prices were still a threat to the global economy. 	
 Elsewhere, the European Energy Exchange said it traded 68.6
terawatt hours of German and French power futures in May, down
from 85.9 TWh in May 2011. 	
 Analysts say that recession and regulation have curbed
operators' interest in forward markets. Power curve prices have
fallen by 20 percent in the past 12 months.	
 May spot power trading by the Epex spot market in Paris
amounted to 29.2 TWh compared with 25.0 TWh in May 2011, the
exchange reported. This includes day ahead auctions for
Germany/Austria, France and Switzerland and an intraday market. 	
 In macroecnomic news, German industrial orders slumped more
than expected in April, posting their steepest fall since
November 2011, adding to signs of a slowdown even in Europe's
biggest economy that has so far held up. 	
 In utility news, E.ON said it could face a low double-digit
million euro hit from "irregularities" of one energy
trader. 	
	
 (Reporting by Vera Eckert,; Editing by Alison Birrane)	
 	
 

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