March 28, 2012 / 2:33 PM / 7 years ago

Europe Power-More wind power supply curbs spot price

FRANKFURT, March 28 (Reuters) - Rising wind power production
raised supply in the key European power markets Germany and
France on Wednesday while high temperatures curbed demand, which
depressed spot power prices.	
    German day ahead baseload was off 4.10 euros a megawatt hour
 at 33.60 euros a megawatt hour day-on-day while French
Thursday delivery lost 1 euro to 38 euros.	
    Temperatures in the region are some 4 degrees above seasonal
averages and should remain at those levels until Thursday,
weather reports said. 	
    But from Friday, top daytime temperatures will retreat from
22 degrees at current to 17 degrees on Friday and 14 degrees at
best on Saturday.	
    E.ON's Wilhelmshaven coal-fired block of 757 MW was offline
due to boiler problems with view to reopening on Friday,
according to E.ON's websites.	
    The nuclear maintenance season is about to start, with RWE's
Gundremmingen B due to close for six weeks from
Friday. But this will coincide with a quiet fortnight
for demand starting next week due to the upcoming Easter
holidays.	
    Prices along the forwards power curve rose alongside carbon,
gas and coal prices gains, although crude oil fell on prospects
for a strategic U.S. reserves release. 	
    Cal '12 baseload rose by 40 cents to 52.0 euros in
Germany, and the same French contract firmed by 15 cents to
52.40 euros. 	
    Deutsche Bank Research (DBR) said in a note that the German
curve may be undervalued and not reflect coming capacity
withdrawals, especially given that CO2 rights to cover power
output will be 100 percent auctioned from next
year. 	
    The DBR base case envisages Cal '13 baseload at an average
55.10 euros, 2014 delivery at 55.50 euros and 2015 delivery at
58.2 euros.	
	
 (Reporting by Vera Eckert,; Editing by Alison Birrane)
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