Less Demand, More Renewables Push Down Spot Prices
Forecasts for lower electricity consumption heading into the weekend and expectations for a pick-up in renewable supply pushed spot power prices lower in central and southeastern Europe on Thursday, traders said.
On regional exchanges, Czech, Slovak and Hungarian electricity for delivery on Friday fell 6 percent to 44.20 euros ($55.44), while Romanian day-ahead power dropped 7 percent to 43.09 euros.
On Wednesday, Romania linked its day-ahead market with those of the Czech Republic, Slovakia and Hungary as part of a plan to improve supplies and make retail prices more stable.
Rising wind and solar production was the main driver for spot prices, traders said. Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany almost doubling to 1.5 gigawatts, with output in Romania steady at 1.8 GW.
Solar production was forecast to nearly triple to 1.4 GW.
Further along the curve, the Czech front month fell 15 cents to 34.20 euros, and Hungarian power for December dipped 45 cents to 43.80 euros.
On the Prague-based Power Exchange Central Europe, the Czech Cal '15 fell 7 cents to 34.75 euros, and the Hungarian front year declined 20 cents to 42.85 euros.
Around the region, the benchmark German Cal '15 contract declined 8 cents to 35.25 euros in afternoon trade on Germany's EEX exchange.
Hungarian Prime Minister Viktor Orban, seen by some in Brussels and Washington as cosying up to the Kremlin, said his country would not be forced to pick one side or another in a Cold War-style standoff in Europe.
In Poland, day-ahead power on the POLPX exchange rose to 332.58 zlotys ($99) from 295.48 zlotys as data from the bourse showed planned and unplanned outages would rise to 5.8 GW from 5.1 GW on Thursday, including three units at Belchatow.
Brent crude oil steadied above $78 a barrel on Thursday as reports that oil producers would agree to cut output next week offset weak economic data from China and Europe.
European carbon futures dipped 5 cents to 6.99 euros a tonne in afternoon trading.
(Reporting by Michael Kahn; editing by Jane Baird)
