September 14, 2017 / 7:22 AM / 10 months ago

Spot power prices surge on wind output decline, forward curve extends gains

PARIS (Reuters) - European spot power prices surged on Thursday boosted by a sharp decline in wind power output, while contracts for next-year delivery extended their rally to a new 3-1/2 year high tracking gains in fuel and carbon prices.

The German Cal’18 benchmark contract TRDEBYZ8 hit its highest level since February 2014 in early trade, adding 1.39 percent to 36.50 euros (32.84 pounds) a megawatt-hour (MWh).

The less liquid French equivalent TRFRBYZ8 rose 1.54 percent to 42.80 euros/MWh.

December 2017 expiry EU carbon allowances CFI2Zc1 gained 4.65 percent to 7.43 euros a tonne - a 20-months high - after the European Parliament adopted a plan to protect carbon prices against fall-out in the event of a hard Brexit.

In the spot market, the baseload German prompt power price for Friday delivery TRDEBD1 surged 47.87 percent or 11.25 euros to 34.75 euros/MWh.

The French spot TRFRBD1 added 17.46 percent or 5.5 euros to 37 euros/MWh.

Electricity production from German wind turbines is expected to tumble by over 12.2 gigawatts (GW) day-on-day on Friday to 14.2 GW. In France, wind generation is forecast to fall by 3.7 GW to 1.8 GW, according to Thomson Reuters data.

Reporting by Bate Felix; editing by Richard Lough

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