Europe Power-German wind supply cuts spot prices

* Wind power output to triple on Thursday
* Cold outlook lifts month ahead
* Curve rises with other fuels

FRANKFURT, Jan 25 (Reuters) - More wind power weighed
on European spot electricity prices on Wednesdy while some week
ahead and February prices rose on expectations for somewhat
colder temperatures, traders said.
German prices for Thursday delivery dropped by 7.35
euros a megawatt hour to 44.15 euros while the French contract
shed 1.70 euros to 45.55 euros.
"Wind capacity usage will triple over Wednesday's to over
10,000 MW in the course of Thursday," one trader said.
German meteorological office DWD predicted a drop in
temperatures from the weekend onwards and frost in wide parts of
Germany from mid-next week. French temperatures are also
expected to cool significantly next week with levels 1 to 4
degrees below seasonal averages.
Some weather forecasts have pointed to colder weather
hitting parts of Europe in Feb-April.
February baseload gained 70 cents in Germany to 48.40 euros
and 80 cents in France to 49.60 euros.
Along the power forwards curve, 2013 delivery prices rose
with those of carbon, coal, and gas.
Brent crude slipped below $110 on recession fears, partly
rekindled by stalled Greek debt talks, which overshadowed the
demand outlook. But threats by Iran to respond to European
sanctions by shutting a vital trade route supported prices.
The French baseload contract for delivery next year rose by
5 cents to 50.15 euros and the German Cal '13 contract
gained 25 cents to 51.30 euros.
The German benchmark has established itself again above 51
euros but remains in a long-term downtrend begun in August.
German business sentiment rose for the third month in a row
in January, beating expectations and offering further evidence
that the country is shrugging off the sovereign debt crisis
better than its euro zone neighbours.
In the renewable sector, a plan to cap solar panel
installation at 1,000 megawatts (MW) annually proposed by
Germany's economy minister would spell the end for the domestic
solar energy industry, German manufacturer Bosch said in another
episode of a controversy story over subisidies.

(Reporting by Vera Eckert; editing by William Hardy)