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EUROPE POWER-Spot power prices lifted by fall in German wind output
July 4, 2017 / 11:58 AM / 4 months ago

EUROPE POWER-Spot power prices lifted by fall in German wind output

PARIS, July 4 (Reuters) - European spot electricity prices for day-ahead delivery rose on Tuesday on the back of a forecast fall in German wind power and a slight increase in consumption, while year-ahead prices hit their highest in weeks, supported by coal.

* The German baseload spot contract for Wednesday delivery rose 9.44 percent or 3.35 euros to 38.85 euros ($44.10) per megawatt-hour (MWh).

* The French Wednesday delivery price rose 0.57 percent to 44 euros/MWh, with gains capped by expectations that several nuclear reactors will restart production by Wednesday evening following planned outages.

* Electricity production from German wind turbines will tumble by 6.6 gigawatts (GW) on Wednesday to about 2 GW, according to Thomson Reuters data.

* German power demand is expected to rise by 300 megawatts day-on-day on Wednesday to 69.8 GW, the data shows, while average temperature will rise by 1.4 degrees Celsius.

* In France, demand is expected to rise marginally by 200 megawatts (MW) on Wednesday to 48 GW, while average temperature will climb by 2.6 degrees.

* On the supply side, French nuclear availably is also expected to rise from 57.48 percent of capacity on Tuesday, with 7 EDF reactors expected to resume production in the next 24 hours, potentially adding 7.7 GW of capacity.

* Nuclear power availability is however expected to decline again going into next week as EDF carries out maintenance of its reactors during summer.

* Marex Spectron said in a research note that fossil fuel power generation is expected to increase over the next seven days, while electricity from renewable sources is predicted to be on the weak side, with more solar and less wind.

* Along the forward curve, prices rose, tracking gains in coal and carbon contracts. The German Cal ‘18 benchmark hit a four-month high, adding 0.42 percent to 31.28 euros/MWh, its highest level since March 2.

* The equivalent French contract rose 0.68 percent to 37.05 euros/MWh.

* Coal cif North Europe gained 0.14 percent to $71.10 per tonne, its highest since November 2016 as mining outages in Australia and strong demand support global coal prices.

* The December-expiry EU carbon contract rose 0.78 percent to 5.18 euros a tonne.

* In eastern Europe, the Czech contract for Wednesday gained 2 percent to 38.25 euros/MWh, the year-ahead 2018 contract added 0.63 percent to 31.65 euros/MWh. ($1 = 0.8810 euros) (Reporting by Bate Felix, editing by David Evans)

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