French Spot Premium Widens on Rising Demand

European prompt power prices diverged on Tuesday as French levels rose on forecasts for rising electricity demand while Germany's fell on higher renewable production.

 

Germany's contract for Wednesday delivery was down 10 cents at 44.65 euros ($52) per megawatt-hour (MWh).

 

The equivalent French contract rose 1.25 euros to 50 euros/MWh.

 

Power demand in France will rise by 680 MW on Wednesday, data from Thomson Reuters Point Carbon showed, while consumption in Germany was set to increase by 440 MW. French electricity consumption is more sensitive to swings in temperatures due to France's higher use of electrical heating.

 

Germany's solar power production was seen rising by 740 MW and wind output was expected to climb by 380 MW.

 

Power curve prices rose on higher coal prices.

 

Coal cif north Europe for 2016 rose by $0.35 a tonne from the previous day's McCloskey index to $58.65 a tonne.

 

Germany's Cal' 16 baseload position, the benchmark for European electricity prices for delivery next year, rose 20 cents to 31.75 euros/MWh.

 

The equivalent French contract was up 10 cents at 37.65 euros/MWh.

 

European carbon prices were 0.55 percent down at 7.26 euros/tonne. Members of a European Parliament committee have dropped a proposal to start reforms to the EU carbon market in 2019, three parliamentary sources said.

 

RWE is exploring the sale of power plants, its chief operating officer told Reuters on Tuesday, frustrated with profit erosion and lack of political support for its struggling generation units.