Wires

CEE POWER-CEE day ahead diverges, solar rise hits spot

* Solar production in region forecast at 3.1 GW

* Croatia to choose power plant partner in April

* Polish utilities to have 4.4 GW offline for Friday

PRAGUE, Oct 10 (Reuters) - Central European day ahead powerdiverged on Wednesday with forecasts for rising solar productionin the region driving Czech and Slovak prices lower as spotpower gained in Hungary, traders said.

Electricity for Thursday delivery fell nearly 1 percent to51.29 euros ($66.14)per megawatt hour on regional exchangeswhile day ahead in Hungary climbed more than 3 percent to 53.51euros. German day ahead rose to 52.69 euros on EPEX spot.

The three central European countries combined their dayahead markets in September to help provide better supply for theregion but since then Hungary has helped to narrow - and oftenerase - the typical Czech and Slovak discount to Germany.

Data from Thomson Reuters Point Carbon showed forecasts forwind generation in Germany falling to 1.1 GW but solarproduction climbing to 3.1 GW.

"The outlook for tomorrow is slightly bearish," Point Carbonanalysts wrote. "Despite a reduction in wind power production,the increase in solar power and the reduction in consumption dueto lower cloud cover levels point into a bearish direction."

Further along the curve, the Czech Cal '13 contract fell 20cents to 46.85 euros on the Prague-based Power Exchange CentralEurope, representing a 1.40 euro discount to the benchmarkGerman long-term contract, market participants said.

Around the region, Croatia said it would choose by nextApril its strategic partner in the construction of a500-megawatt thermal power plant in the northern Adriatic.

Polish power grid company PSE Operator will start rejectingmotions to connect new wind farms to the system because of alack of available capacity.

The country's local utilities are expected to build newpower blocks that will add 9 gigawatts to the country's totalpower capacity by the end of the decade.

Data from the grid operator showed Polish utilities wouldhave 4.4 gigawatts of power offline for maintenance on Friday.Day ahead on the country's POLPX exchange held steady at 188.12zlotys ($59.46).

Brent crude oil held above $114 a barrel and close to athree-week high on Wednesday as worries over the security ofMiddle East supplies outweighed increasing evidence of slowingglobal economic growth.

EUAs for December delivery, the benchmark EUcarbon contract, had fallen about 3 percent to 7.66 euros atonne at 1304 GMT.($1 = 0.7754 euros)($1 = 3.1639 Polish zlotys)

(Reporting by Michael Kahn; Editing by William Hardy)

((michael.kahn@thomsonreuters.com)(+420 224 190 443)(ReutersMessaging: michael.kahn.thomsonreuters.com@reuters.net))

Keywords: MARKETS CEE/ELECTRICITY