Lower consumption, higher supply hits prices
FRANKFURT, Aug 1 (Reuters) – European spot power fell on Tuesday on falling consumption and higher wind supply in Germany while thermal capacities generally were more than adequate, traders said.
* German baseload power for Wednesday delivery was off 4 percent at 33.6 euros ($39.67) per megawatt-hour (MWh).
* The French spot contract for the day-ahead was 2.2 percent down at 33.8 euros/MWh.
* German wind power production will likely rise by 2.2 gigawatt (GW) day-on-day to 5.2 GW, Thomson Reuters data showed.
* Electricity demand is expected to fall by 0.4 GW in Germany and by 0.3 GW in France as temperatures stay warm but that has been factored in.
* Traders said that most factors were bearish for the time being, with conventional plants producing more and demand suffering in the holiday period.
* Broker Marex Spectron in a research note also said that a deep low pressure system should reach western Europe within the next couple of days, bringing strong winds over the region.
* In the forward power market, the German benchmark contract for delivery of baseload in 2018, Cal ’18, shed 0.2 percent to 31.3 euros/MWh, with coal trading sideways, gas down, and oil and carbon posting gaining.
* The less liquid French year-ahead power contract was untraded after a 37.05 euros close.
* Dec 2017 expiry EU carbon emissions rights prices were 1.9 percent higher at 5.33 euros a tonne, while remained untraded after hitting near nine-month highs on Monday, driven by Chinese demand in the global market.
* Coal cif North Europe for 2018 had closed on Monday at $75.5 a tonne.
* In eastern Europe, the Czech Wednesday delivery contract jumped by 7.5 euros to 56 euros/MWh. The year-ahead contract did not change hands after closing at 32.5 euros/MWh. ($1 = 0.8470 euros)