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EUROPE POWER-Prompt prices down on higher renewables, flat demand

EUROPE POWER-Prompt prices down on higher renewables, flat demand

Reuters · 09/14/2022 04:20
EUROPE POWER-Prompt prices down on higher renewables, flat demand

- European spot power on Wednesday fell on higher supply of wind and solar power in Germany and France while day ahead demand was forecast to remain unchanged.

German Thursday baseload TRDEBD1 fell 16.9% to 364 euros ($364.04) per megawatt hour (MWh) by 0810 GMT.

The equivalent French contract TRFRBD1 was down 0.7% at 456 euros.

Supply from German wind turbines is forecast to more than double to 19.6 gigawatts (GW) on Thursday from 9.2 GW, while German solar volumes are expected to rise to 6 GW from 4.8 GW, Refinitiv Eikon data showed.

Day-on-day gains in the two categories in France will likely be 200 MW and 500 MW respectively, the data showed.

Nuclear availability in France on Wednesday was down by two percentage points from a day earlier at 46% of total capacity. POWER/FR

Broker Marex said in a short-term market analysis that weather patterns were pointing to a possible succession of low-pressure systems across Europe that would favour wind generation.

Power demand in Germany is forecast to remain at 57.7 GW and in France at 44.9 GW on Thursday, the same as expected levels on Wednesday.

Along the curve, the German front-year delivery contract gained 1.9% to 494 euros TRDEBYZ3, but only in one trade move.

Forward contracts have fallen more than 30% since sky-high peaks at the end of August as gas storage levels have risen but remain high on scarcity of power and gas supply.

German baseload power for 2023 delivery TRDEBYZ3 shed 1.9% to 475 euros/MWh.

The equivalent French position TRFRBYZ3 was untraded after closing at 540 euros.

European CO2 allowances for December 2022 expiry CFI2Zc1 edged down 0.5% to 69.39 euros a tonne.

As the European Union weighs options to tackle the soaring cost of energy, the European Federation of Energy Traders (EFET) has said price caps on wholesale power and gas are the way to go.

($1 = 0.9999 euros)

(Reporting by Vera Eckert; editing by Jason Neely)

((vera.eckert@thomsonreuters.com; +49 30 2201 33654))