December 21, 2015 / 3:09 PM / 2 years ago

EUROPE POWER-Abundant wind power curbs German spot prices in low demand week

* Plenty of wind, sluggish demand in Germany

* French demand to pick up slightly

* Forward power curve tracks weak fuels

FRANKFURT, Dec 21 (Reuters) - German prompt power prices fell on Monday due to high wind power generation which co-incided with weak demand ahead of the Christmas holidays when businesses will close for four days in a row.

“Apart from the high supply, it is much too mild, meaning negligible heating demand,” one German trader said.

Wind energy production is forecast to rise to 30 gigawatt hours (GW), more than three quarters of the potential total, overnight to Tuesday, falling to a still respectable 20 GW when daytime demand kicks in, weather reports said.

They pegged supply up to Wednesday afternoon at between 24 and 28 GW.

The German baseload power price for Tuesday delivery was down 4.45 euros at 19.3 euros ($21.02) per megawatt-hour (MWh) compared with the price paid for Monday. Both levels are typical of weekends rather than weekdays.

The French equivalent gained 2.5 euros to 31.5 euros/MWh.

Point Carbon saw French day-on-day power demand rising by 0.4 GW to Tuesday while that in Germany is due to fall by 2.1 GW.

French nuclear power production remains high at 93 percent of available capacity.

On the forward power curve, prices were dragged down by lower coal and oil prices while carbon and the UK gas curve reversed directions upwards.

German baseload power for next year, Cal ‘16, was 10 cents down at 28.05 euros a megawatt-hour (MWh), 0.1 euros or 0.35 percent down. The equivalent French contract was at 33.55 euros/MWh, 25 cents down.

European coal prices for 2016 fell $0.4 or 0.91 percent to $43.60 a tonne.

Front-year EU carbon allowances rose $0.06 or 0.74 percent, to 8.19 euro a tonne.

Crude oil prices hit their lowest in more than 11 years, driven down by a relentless rise in global supply that looks set to outpace demand again next year.

Germany’s primary energy consumption this year is up 1.3 percent from 2014 due mainly to colder weather early in the year, industry statistics group AGEB said. ($1 = 0.9181 euros)

Reporting by Bate Felix; Editing by Greg Mahlich

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