Oil report

Iberian spot power hit by nuclear, wind forecast

* Spain day-ahead base 22.77 euros ($30.76)/MWh, down 9.45

* Cal-11 base 39.80/40.30 euros/MWh (OTC)

MADRID, March 23 (Reuters) - Iberian spot power posted its largest fall in a month on Tuesday, driven by a rise in cheaper electricity from wind parks and a nuclear power plant coming back on line.

The 1,000 megawatt Vandellos II nuclear power station was reconnected to the grid on Monday night and by Tuesday morning was running at about 40 percent of capacity. [ID:nLDE62M0J6]

National grid operator REE REE.MC predicted wind power in Spain -- which accounts for 85 percent of the Iberian market -- would rise to 6,800 MW on Wednesday from 3,500 MW on Tuesday morning.

Dealers said the fall of 9.45 euros per megawatt-hour in the day-ahead “pool” price fixed by the Omel exchange was bigger than many had expected, and saw little or no additional downside for Wednesday.

This was the largest one-day fall since a 16.25 euro/MWh drop on Feb. 26.

Along the curve, prices fell early but recovered to trade little changed by late morning.

“The market is awaiting direction after the sharp fall in the pool,” a trader said.

Calendar-year 2011 was quoted at 39.80/40.30 euros/MWh in over-the-counter dealing, compared to trades settled at 40.05 late on Monday.

All eight of Spain’s nuclear power stations were operating and generating 6,746 MW between them, or the equivalent of 18.3 percent of domestic demand, data from REE and the CSN watchdog showed. (Reporting by Martin Roberts; Editing by Amanda Cooper)