September 29, 2016 / 3:21 PM / 2 years ago

EUROPE POWER-Forwards turn lower after surge higher

* Profit-taking seen from day’s highs

* Coal up on pre-winter covering, CO2 flat, oil slips

* Spot rises, colder weather nearing (Recasts, adds fresh quote, updates prices throughout)

FRANKFURT, Sept 29 (Reuters) - European forward electricity prices fell on Thursday after briefly rallying to levels not seen in more than a year.

Benchmark prices had gained on a report saying France might extend nuclear outages, which would tighten supply in the region as winter approaches.

Crude oil prices which affect other energy markets also slipped while coal, closely related to power, pared gains too.

German markets will be closed on Oct 3 for unification day celebrations.

The benchmark German Cal’17 year-ahead baseload contract was at 29 euros ($32.58) a megawatt hour (MWh), down 1.5 euros from the earlier 30.5 euros high.

That was still a level last seen in September 2015 and 5 percent above Wednesday’s opening.

The less liquid equivalent French contract was 85 cents below its previous close at 37.75 euros, sharply down from the day’s high of 39.5.

French utility EDF will lengthen probes into equipment at 12 reactors during their routine outages.

Germany and France, representing two thirds of European consumption, are closely interconnected and supply gaps in France are mainly covered by Germany.

Strength in power underpins coal, which accounts for more than 40 percent of German generation, and which also benefits from a demand-driven global upswing.

European delivered API2 coal prices for 2017 were 0.9 percent up at $64 a tonne.

Front-year EU carbon allowances were 0.2 percent up at 4.96 euros a tonne, having hit 5.37 earlier.

Spot power prices extended gains on lighter wind and solar supply and cooler weather expectations, which will lift consumption.

Thomson Reuters data showed German average daily temperatures will be 7 degrees Celsius down next week from Thursday’s level and those in France will shed 3 degrees.

German baseload for Friday delivery increased by 10 euros to 34 euros/MWh while the same French contract rose 1.25 euro to 40.25 euros/MWh.

The Czech year-ahead 2017 contract was 1 euro up at 30 euros/MWh while day-ahead power stood 1.7 euros higher at 38.7. ($1 = 0.8900 euros) (Additional reporting by Nina Chestney in London; Editing by Jason Neely and David Goodman)

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