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Lower wind supply and rising consumption lift spot price

Published 15/08/2022, 10:34
© Reuters. FILE PHOTO: Steam rises from the cooling towers of the coal power plant of RWE, one of Europe's biggest electricity and gas companies in Niederaussem, Germany,  March 3, 2016.    REUTERS/Wolfgang Rattay
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PARIS (Reuters) - European spot power contracts climbed on Monday with wind supply forecast to fall, consumption seen rising in Germany and nuclear availability lower in France.

Wind output in Germany was expected to be close to zero for several hours on Tuesday, Refinitiv analysts said, while solar output and consumption were both expected to increase, causing the residual load to increase day on day.

The French Tuesday baseload was at 476 euros ($485.19) a megawatt hour (MWh) at 0907 GMT, up 21.9% from Monday delivery.

The equivalent German contract gained 21.5% to 480 euros/MWh.

Supply from German wind turbines is forecast to drop by 2.9 gigawatts (GW) to 2.8 GW on Tuesday, while supply in France is expected to fall 1.4 GW to 1.3 GW, Refinitiv Eikon data showed.

Solar supply in Germany is seen rising 2.1 GW to 11.6 GW, the data showed.

French nuclear availability fell 1.5 percentage points to 48.5% of available capacity as net supply fell by 900 megawatts (MW) from Friday. [POWER/FR]

Demand was forecast to rise by 1.1 GW to 56.5 GW in Germany on Tuesday and fall 2.6 GW to 36.2 GW in France, the data showed.

Along the curve, the German fourth quarter 2022 and first quarter 2023 baseload power contracts reached highs, tracking rising gas costs.[NG/EU]

The German baseload for 2023 delivery was untraded with the bid-ask range between 466 and 476 euros/MWh. The contract reached a contract high of 463 euros Friday.

The equivalent French position was untraded after closing at a contract high of 612 euros on Friday.

European CO2 allowances for December 2022 expiry rose 1.2% to 89.91 euros a tonne.

© Reuters. FILE PHOTO: Steam rises from the cooling towers of the coal power plant of RWE, one of Europe's biggest electricity and gas companies in Niederaussem, Germany,  March 3, 2016.    REUTERS/Wolfgang Rattay

Russian gas flows to Europe via some major pipeline routes were steady on Monday morning, operator data showed.

($1 = 0.9811 euros)

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