March 13, 2020 / 10:04 AM / 22 days ago

EUROPE POWER-Monday prices rise, German wind expected to drop

FRANKFURT, March 12 (Reuters) - Power prices for Monday delivery rose in Europe’s wholesale market on Friday as wind power supply in the main producer country Germany was forecast to fall by two thirds in the period from high levels previously.

* Germany’s Monday baseload price was at 31.8 euros ($35.53) per megawatt hour (MWh) at 0950 GMT, 71.6% above the price paid for Friday delivery.

* The equivalent French contract was untraded after Friday had closed at 28.7 euros.

* Electricity generation from German wind turbines is expected to fall to 11.8 gigawatts (GW) on Monday, compared with 35.6 GW on Friday, Refinitiv Eikon data showed.

* Broker Marex Spectron noted the drop in wind from high levels and added that French outages were increasing a “short-term tightness over western Europe”.

* French nuclear availability has fallen by 3.5 percentage points to 71.5% of maximum capacity.

* The bullish supply factors overrode the effects of falling demand caused by rising temperatures.

* Consumption is expected to stand at 66.9 GW in Germany on Monday, representing a 800 MW decrease from Friday, while usage in France will likely be 58.9 GW, down by 1.3 GW, Eikon data also showed.

* Average temperatures are projected to increase between 1 and 2 degrees Celsius into early next week.

* Along the curve, Germany’s Cal ‘21 baseload, the European futures benchmark, gained 0.5% to trade at 39.3 euros, tracking a rebound in carbon, coal, and oil prices after slumps this week.

* The equivalent French year-ahead contract was 0.7% higher at 41.8 euros/MWh.

* December 2020 expiry European CO2 allowances added 1.6% to 22.88 euros a tonne.

* Hard coal for northern European delivery in 2021 was 1.4% up at $55.5 a tonne.

* BayernLB bank in a research note spoke of bearish signs for gas, citing coronavirus, and an intact downward trend for coal as weak currency producers were likely to step up exports to earn more dollars. It said carbon and power had been relatively robust.

* Aurora Research commented on the possible impact from coronavirus on power markets, remembering the 2009 finance crisis. A German recession of the scale of that time could reduce power demand by 5-10%, it said.

* Germany’s power grid industry is set to expand big battery capacity to 517 megawatts (MW) in 2020, 14% more than last year’s 453 MW, data from German advisory groups 3EC and Team Consult showed. ($1 = 0.8949 euros) (Reporting by Vera Eckert, editing by Barbara Lewis)

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