* Two unplanned outages reported in France overnight
* Lingering worries over tight French supply
* Strong power demand expected on Thursday
* Forward curve track gains in oil and other fuels
PARIS, Oct 5 European spot electricity prices
for next-day delivery rose on Wednesday with the French contract
hitting its highest level since January on tight supply concerns
as two unplanned outages were announced overnight.
Unplanned outages were reported at EDF's 1,300
megawatt (MW) Paluel 4 reactor and at Engie's 428 MW
Cheylas 2 gas-fired plant, French power grid operator RTE said
on its website.
Both plants are expected to resume full production by
"It is all on concerns over French supply. That is what is
driving the market," a Paris-based trader said.
European power prices have soared to one-year highs in the
past week on French nuclear power supply worries ahead of winter
when demand for heating is set to increase.
Nuclear power accounts for about 75 percent of French
electricity needs. According to Reuters tabulation, 22 out of 58
French nuclear reactors are currently on planned or statutory
outage representing about 36 percent of its installed nuclear
French baseload power price for Thursday delivery
rose 9.75 euros or 25 percent to 48.75 euros /MWh. The German
contract also gained 1.25 euros or over 4 percent to
32.25 euros /MWh.
French power demand is seen rising day-on-day on Thursday by
1.2 gigawatts to over 50 GW as temperatures fall 1.9 degree
Celsius to average 13 degrees. In Germany, demand will rise by
850 MW day-on-day to over 70 GW.
Along the forward power curve, prices rose on Wednesday
tracking gains oil and other fuels.
Oil prices rose in early trading on Wednesday after a report
that U.S. fuel inventories may have fallen for a fifth straight
week, but contracts remained near the $50 marker where many
traders currently see fair value for crude.
The German benchmark Cal'17 year-ahead baseload
contract was up 2 cents or 0.67 percent to 30.15 euros a
megawatt hour (MWh).
The less liquid equivalent French contract also
gained 3 cents or 0.76 percent to 39.60 euros /MWh.
Front-year EU carbon allowances was up 2.5 percent
to 5.34 euros a tonne.
Coal, which accounts for more than 40 percent of German
power generation, rose 0.92 percent to $65.65.
In eastern Europe, the Czech year-ahead 2017 contract
was untraded with a bid/ask price of 30.50/31.00
The spot price for Thursday gained 16.5 euros or
53.23 percent to 47.50 euros/MWh after utility Cez
said its 1,080 MW Temelin unit 2 nuclear plant was still offline
and was expected to resume production around mid-October
($1 = 0.8952 euros)
(Reporting by Bate Felix; Editing by Keith Weir)