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Europe Power-Spot prices rise on cold weather, less wind

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Published: Monday, 25 Mar 2013 | 10:23 AM ET

* Prolonged cold weather lifts nearby demand

* German wind power output seen falling, solar high

* Curve prices steady to higher with oil, carbon

FRANKFURT, March 25 (Reuters) - European spot power prices rose on Monday on forecasts of cold weather this week, which offset weaker demand prospects ahead of Easter holidays.

German baseload power for Tuesday delivery

was 6 euros up at 40 euros a megawatt hour.

Weather data showed German solar power levels at 15 to 17.5 GW during daytime peak hours in the period to Thursday. Wind power, while projected to range between a strong 10 and 15 GW on Tuesday, was seen falling off sharply thereafter.

German met office DWD in a daily note put temperatures in the first half of the week in a broad range around zero. Meteorologists say March is only as cold as this year every 20 to 25 years.

But temperatures will likely rise to between zero and plus 9 degrees on Thursday.

The French baseload power contract for Tuesday

jumped 9 euros to 76 euros compared with what was paid for Monday delivery.

France, where Paris in the first half of the week will see temperatures of just 6 to 8 degrees, is sensitive to cold snaps because much of its heating infrastructure relies on electricity.

Traders also said nuclear supply was tighter than forecast.

Along the power forward curve, German Year Ahead

delivery gained 10 cents to 41 euros, along with firm carbon and oil. French Cal '14 baseload was 35 cents off at 44.15 euros.

Brent crude rose well above $108

after Cyprus secured a last-minute bailout deal, averting a deeper euro zone crisis and boosting the outlook for oil demand in the troubled region.

Carbon emission rights for December delivery gained 5.8 percent to 4.39 euros a tonne

.

UK gas prices corrected down after a rally last week driven by depleted gas storage reserves during the unusual cold snap.

Coal prices traded sideways.

(Reporting by Vera Eckert; editing by James Jukwey)

((vera.eckert@thomsonreuters.com)(+49 69 7565 1228)(Reuters Messaging: vera.eckert.thomsonreuters.com@reuters.net))

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 Print
*Prolonged cold weather lifts nearby demand. FRANKFURT, March 25- European spot power prices rose on Monday on forecasts of cold weather this week, which offset weaker demand prospects ahead of Easter holidays. was 6 euros up at 40 euros a megawatt hour.

   
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