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Europe Power-German spot up on lower wind, French down

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Published: Wednesday, 27 Mar 2013 | 4:24 PM ET

* German wind power output to fall

* Warmer weather drag French spot down

* Curve rises, tracks oil, carbon prices

PARIS, March 27 (Reuters) - European power prices were mixed on Wednesday, with German spot prices rising on forecasts for lower wind power production, while French prompt fell on expectations for warmer weather.

German baseload power for Thursday delivery

was

5.5 euros up on the day at 48.75 euros ($62.3) a megawatt hour (MWh).

Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany falling by nearly half to 2.9 GW and solar production at 4.5 GW.

"Wind power is expected to decrease around 3 GW on average tomorrow compared to what is forecast for today," Point Carbon analysts wrote in a daily note.

The equivalent baseload French contract was down 2 euros at 73 euros per MWh.

Despite the fall, French spot power prices remain higher than their German peers because of France's reliance on electric heating which makes electricity demand more sensitive to cold weather.

Temperatures in France were expected to warm up on Thursday, but remained about 2 degrees Celsius below seasonal averages, according to French power grid data RTE.

French traders mentionned tight nuclear power supply preventing a further decline. Currently, about 79 percent of total reactor capacity is online.

Along the power forward curve, German Year Ahead delivery (Cal '14)

gained 20 cents to 41.75 euros, tracking oil and carbon prices. This was its highest level of the month, according to Reuters data.

French Cal '14 baseload

power contract was down 20 cents at 45 euros, after rising by about a euro the previous day.

Crude oil prices rose in choppy trading as U.S. heating oil rallied on falling distillate inventories, while rising crude oil stockpiles in the United States and the stronger dollar limited gains.

Carbon emission rights for December delivery gained 6.7 percent to 4.93 euros a tonne

. ($1 = 0.7824 euros)

(Reporting by Michel Rose; Editing by Marguerita Choy)

((michel.rose@thomsonreuters.com)(+33149495570)(Reuters

Messaging: michel.rose.thomsonreuters.com@reuters.net))

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 Print
PARIS, March 27- European power prices were mixed on Wednesday, with German spot prices rising on forecasts for lower wind power production, while French prompt fell on expectations for warmer weather. 5.5 euros up on the day at 48.75 euros a megawatt hour. The equivalent baseload French contract was down 2 euros at 73 euros per MWh.

   
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