CEE POWER-Czech spot falls, market recouples with Slovakia

Related Topics

Wed Jan 25, 2012 10:36am EST

* Cal '13 up 10 cents to 49.10 euros

* Wind generation forecast up at 6.8 GW

* Spot rises in Hungary, falls in Poland

PRAGUE, Jan 25 (Reuters) - Czech spot prices fell on Wednesday despite cooler temperatures as renewable production in the region was forecast higher while the Czech and Slovak markets reconverged a day after prices split, traders said.

Electricity for Thursday fell to 44 euros ($57.11) per megawatt hour in the over-the-counter market, down from 48.25 euros a day earlier and representing about a 30 cents discount to the spot price in neighboring Germany.

Czech market operator OTE cleared day ahead down 9 percent at 44.53 euros a day after Czech and Slovak prices diverged for the third time since last Monday.

Data from Thomson Reuters Point Carbon showed higher forecasts for solar production in Germany and wind generation jumping to 6.8 GW from 2.4 GW.

"Despite the fact it is finally getting cold this winter, the spot is down because of the above-average wind production," one trader said.

Further along the curve, the front month rose 1.4 percent to 47.50 euros while Cal '13 baseload rose 20 cents to 49.10 euros in over-the-counter trade.

Around the region, the benchmark German Cal '13 rose 40 cents to 50.95 euros in late afternoon trading on Germany's EEX.

Europe's gas prices have been low in the past months as a mild winter and weak economy have dented demand, but some banks say that the market could tighten as soaring Asian demand could drain Europe from Qatari liquefied natural gas (LNG) shipments.

Day ahead on Hungary's HUPX remained well above spot prices of regional peers, with traders citing the poor hydro situation in the Balkans as a reason. Power for Thursday on the exchange rose to 78.63 euros from 53.80 euros.

Day ahead on Poland's POLPX fell to 185.70 zlotys ($56.29)from 192.93 zlotys.

In other markets, Brent crude slipped below $110 on Wednesday as recession fears, partly rekindled by stalled Greek debt talks, weighed on the outlook for demand, while threats by Iran to respond to European sanctions by shutting a vital trade route supported prices.

EUAs for December delivery, the bellwether carbon contract, were up 3 cents 7.54 euros a tonne at 1440 GMT. ($1 = 0.7704 euros) ($1 = 3.2989 Polish zlotys) (Reporting by Michael Kahn; Editing by Alison Birrane)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.