European Spot Slips, Wind Output Cancels Strong Demand
Wind power output reaches 6.1 GW in Germany and Austria.
European spot power prices for day-ahead delivery fell on Wednesday as higher wind power output was seen cancelling out increased electricity demand in Germany and Austria.
Wind power supply is expected to almost double day-on-day by 6.1 gigawatts (GW) to 14 GW on Thursday in Germany and Austria, according to data by Thomson Reuters Point Carbon.
Wind output is also expected to rise in France by nearly 2 GW during the same period, the data showed.
German baseload power for Thursday delivery fell 2 euros or 5.84 percent, to 32.25 euros ($34.69) per megawatt-hour (MWh), while the equivalent French contract lost 1 euro or 2.9 percent, to 33.50 euros/MWh.
German and Austrian power demand is seen rising by 3.5 GW to 82 GW as temperatures are expected to fall by an average 1.6 degrees Celsius. However, consumption in France was expected to fall by 1 GW due to milder weather.
In conventional power supply, French nuclear power availability is seen stable above 90 percent of capacity. France depends on nuclear power for over 75 percent of its electricity needs.
Along the forward power curve, prices rose marginally on Wednesday after reaching new lows at the start of the year, below 26 euros per megawatt-hour last seen in April 2003.
The European electricity market has been weighed down by weak generation fuel prices, tepid power demand and competition from rival renewable energy.
German baseload Cal '17 price rose 0.2 euro or 0.78 percent, to 26.00 euros per megawatt-hour (MWh), while the equivalent French contract, which is much less liquid, lost 0.15 euro or 0.46 percent, to 32.55 euros/MWh.
European coal prices for 2016 rose $0.65 or 1.6 percent, to $41.25 a tonne. Front-year EU carbon allowances rose 0.07 euros or 0.87 percent, to 8.13 euros a tonne.
Oil prices hit their lowest in over 11 years on Wednesday, as the row between Saudi Arabia and Iran was seen making any cooperation between major exporters to cut output even more unlikely.
Reporting by Bate Felix
