EUROPE POWER Lower wind, rising consumption lift spot price

PARIS, Nov 2 (Reuters) – European spot power contract prices rose on Wednesday as wind power supply was expected to drop in Germany, and demand is seen rising.

The warmer than average temperatures recorded in the second half of October are expected to persist over the next seven days in Germany and France, alleviating pressure on power prices, broker Marex said.

The general trend of a European Union-wide reduction in industrial output also points towards a clear bearish environment, they added.

German baseload power for delivery on Thursday gained 19.5% at 98 euros a megawatt-hour (MWh) at 0927 GMT.

The equivalent French price rose 14.2% to 119 euros/MWh.

Daily wind power output in Germany was forecast to fall 5.1 gigawatts (GW) day-on-day to 20.9 GW on Thursday, while France’s wind supply was expected to add 1.5 GW to 8.2 GW, Refinitiv Eikon data showed.

French nuclear availability was unchanged at 51% of available capacity.

The idle power generation capacity trend with the French nuclear fleet has reversed from the above average outages seen during the second and third quarter of 2022, putting downward pressure on electricity prices, Marex said.

The French government is aiming to cut red tape for the construction of new nuclear reactors as it aims to double down on its nuclear and renewable energy facilities amid a global energy crunch.

Power consumption in Germany is expected to add 1.7 GW to 59.1 GW on Thursday, while demand in France is set to rise 4.1 GW to 46.9 GW, the data showed.

German baseload for 2023 delivery rose 2.6% to 372.25 euros/MWh. Prices have recently fallen to levels seen near the end of July.

The equivalent French contract was untraded with an ask price of 500 euros.

European CO2 allowances for December 2022 expiry rose 1.4% to 77.78 euros a ton.

Coal prices have fallen in recent weeks, with the McCloskey coal API2 index for 2023 reaching a near seven-month low. (Reporting by Forrest Crellin and Vera Eckert; editing by Elaine Hardcastle)

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