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CEE POWER-CEE day ahead gains on drop in wind generation

* Czech grid operator to limit cross-border capacity on Wednesday

* Wind generation forecast to fall to 1.8 GW

* Serbian water levels forecast flat next week

PRAGUE, Oct 9 (Reuters) - Central European day ahead power rose on Tuesday on forecasts for lower renewable output in the region and prices converged after drifting apart a day earlier, traders said.

Electricity for Wednesday delivery in the Czech Republic, Slovakia and Hungary gained nearly 12 percent to 51.77 euros ($67.14) per megawatt hour on regional exchanges. Limited cross border capacity helped prop up prices, traders said.

The three central European countries combined their day ahead markets in September to help provide better supply for the region. Since then Hungary has helped to narrow - and often erase - the typical Czech and Slovak discount to Germany. For Wednesday, German day ahead traded at 51.55 euros on the EPEX exchange.

Czech grid operator CEPS earlier said on Tuesday it would limit cross border power flows to Slovakia for much of the day on Wednesday due to technical restrictions.

Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany falling sharply to 1.8 GW and solar production falling to 2.3 GW.

Further along the curve, the front month shed 15 cents to 48.85 euros and power for next week tumbled nearly 5 percent to 47 euros. Cal '13 baseload gained 5 cents to 47 euros on the Prague-based Power Exchange Central Europe.

Around the region, the benchmark German Cal '13 contract rose 13 cents to 47.85 euros on Germany's EEX exchange in afternoon trade.

In Poland, day ahead rose to 188.12 zlotys ($59.91) from 165.02 zlotys due to a higher-than-expected amount of power plant outages in the coming days and limited power flows from Sweden, traders said.

A 460 megawatt Lagisza unit will be shut down on Wednesday and Belchatow's 858 MW block also appears to be offline, according to one trader, who said the outage had not yet appeared on the grid operator's website.

"It will likely appear on the website tomorrow," the trader said.

Serbian water levels will be flat through October 16 after they fell last week on all rivers except the Tisa and Drina, Serbia's hydrometeorological service said in a weekly forecast.

Serbian grid operator Elektromreza Srbije (EMS) announced the remaining cross-border capacity available for allocation in November.

Oil rose towards $113 a barrel after two days of losses, with tensions in the Middle East and the risk of supply disruptions outweighing concerns about sluggish global demand.

EUAs for December delivery , the benchmark EU carbon contract, had fallen half a percent to 7.88 euros a tonne at 1307 GMT. ($1 = 0.7711 euros) ($1 = 3.1403 Polish zlotys)

(Reporting by Michael Kahn and Maciej Onoszko; Editing by Jane Merriman)

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

Keywords: MARKETS CEE/ELECTRICITY