* Key forwards position down 1.5 pct
* Temperatures rise, weigh on spot demand
* High wind supply expected
FRANKFURT, Feb 1 (Reuters) - European power futures started the month with heavy losses on dwindling prompt prices and in sympathy with weaker coal and carbon on Monday.
“Producers are still selling even if they are less focused on what oil does than they were in January,” one trader said.
German baseload power for next year, Cal ‘17, lost 35 cents or 1.5 percent compared with Friday, trading at 23.05 euros ($25.01) a megawatt hour (MWh).
The over-the-counter contract has lost 12.5 percent since the start of 2016 and the equivalent Year Ahead bourse contract cited by the EEX has erased all its gains since 2002.
Analysts see little scope for a recovery from these levels, citing global fuel prices at multi-year lows, sluggish demand for power in Europe and Germany’s shift towards renewable energy, which cuts into market share for traditional generators.
The same French contract for 2017 delivery was 10 cents down at 29 euros/MWh.
Coal for delivery in Europe in 2017 lost 2.3 percent at $38.75 a tonne.
Front-year EU carbon allowances, like coal an important generation input in the region, shed 3.1 percent, trading at 5.88 euros a tonne.
Oil prices, which have been behind plummeting fuel prices in recent weeks, fell over 2 percent after China and South Korea posted weak economic data, while fading prospects for a coordinated output cut by leading exporters also hurt.
German prompt power came under pressure from heavy wind influx and fading demand as temperatures rebounded strongly from wintry levels last week.
“On the back of this wind supply, we are trading at weekend prices,” one trader said.
German baseload power for Tuesday delivery cost 15.9 euros/MWh, 6.90 euros below what was paid for Monday.
The equivalent French contract was 50 cents up at 23.5 euros/MWh, again a level typical of weekends when low industrial demand drags down prices.
German wind output, by nature volatile, dipped from by 7 to 11 gigawatts (GW) from Friday levels to 16.8 GW on Monday but should nearly double again to around 32 GW on Tuesday, Thomson Reuters data showed.
Combined power demand in Germany and France on Monday will be 100 MW below that recorded on Friday, when usually, Mondays show big usage gains.
This was owing to a 2-3 degree Celsius rise in average temperatures since Friday, traders said.
($1 = 0.9215 euros)
Reporting by Vera Eckert; Editing by Keith Weir