Strong Winds Send Spot Prices Lower

Expectations for a surge in wind generation in the region sent central European day ahead power prices tumbling on Tuesday, offsetting cold weather that has driving heating demand, trader said.

On regional exchanges, Czech and Slovak electricity for Wednesday fell 37 percent to 31.81 euros ($39) per megawatt hour while Hungarian day ahead dipped 11 percent to 44.96 euros and Romanian prompt power declined 15 percent to 39.07 euros.

Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany rising to 18.6 gigawatts for Wednesday from 4.5 gigawatts a day earlier. Solar generation was pegged at 625 megawatts.

Further along the curve, the Czech Cal '15 rose 5 cents to 34.35 euros and the Hungarian front year gained 5 cents to 43.25 euros in over-the-counter trade.

Around the region, the benchmark German Cal '15 contract ticked 5 cents higher to 34.70 euros in afternoon trade on Germany's EEX exchange.

Serbia's water levels, which rose last week, are expected to stay unchanged on all rivers except the Tisa, where they are expected to ease slightly through Dec. 16, the hydrometeorological service said in a weekly forecast.

Production at a flood-hit coal mine that feeds Serbia's main power plant is unlikely to resume before May, Prime Minister Aleksandar Vucic said, indicating Belgrade will need more coal and power imports than expected.

Ukraine's gas transport monopoly, Ukrtransgaz, said Russia had resumed gas flows to Ukraine after a six-month gap during a dispute over prices and unpaid debts.

Day ahead on Poland's POLPX exchange fell to 167.02 zlotys ($50) from 230.88 zlotys as bourse data showed power plant outages were expected to fall to 3.9 gigawatts for Wednesday from 5.5 gigawatts.

Brent crude oil hit a fresh five-year low before rebounding to near $67 a barrel, as some buyers emerged in the hope that prices are bottoming following a more than 40 percent slide since June.

EU carbon futures rose 7 cents to 6.73 euros a tonne in afternoon trading.

Reporting by Michael Kahn