Supply Pressure Weighs on Prompt Prices

Prospects of higher solar power output and good thermal capacity availability cut European spot power prices on Wednesday as demand remained flat.

German day-ahead baseload for Thursday delivery was 2.15 euros down on the day at 35.60 euros ($46.9) per megawatt-hour (MWh) and the equivalent French contract was 30 cents down at 35.85 euros per MWh.

German solar output is due to pick up by some 400 megawatts to 6.0 gigawatts (GW) on Thursday compared to the previous day, according to Thomson Reuters Point Carbon forecasts.

Thermal operators showed no big outages at their coal and gas generation plants and nuclear availability is currently at 100 percent.

Wind production is languishing, with Thursday's forecast for Germany at just 1.5 GW, in a calm and cool weather pattern that is due to clear up towards the weekend.

Temperatures in Germany, currently below seasonal norms, will reach 16.5 degrees Celsius on a 24-hour average on Friday, up 2 degrees from the present level and are due to stay there each day on average next week, Point Carbon said.

In France, they are likely to be close to 20 degrees each day throughout this week and next, according to the same source.

Demand prospects meanwhile will be flat in France at 45 GW into next week but ease by over 3 GW in Germany next week from 59 GW currently as the weather turns more summery for a while.

Along the forward curve, German baseload power for the year ahead, calendar year 2015, was 5 cents down at 35.6 euros per MWh.

The less liquid French Cal' 15 contract did not trade but was indicated 20 cents lower at 42.95 euros per MWh.

Germany will continue to need coal-fired power plants, its energy regulator said, warning that Europe's biggest economy should not rely solely on renewables or risk increasing exposure to Russian gas as it shuts down nuclear plants.

(1 US dollar = 0.7587 euro) (Reporting by Vera Eckert; editing by Tom Pfeiffer)