3 Min Read
FRANKFURT, July 6 (Reuters) - European prompt power prices fell on Thursday as Germany was expected to see wind power production surge on Friday while French nuclear reactors returned from outages, boosting supply at a time of weakening pre-weekend demand.
* The German baseload contract for Friday delivery was down 8.2 percent at 37.4 euros ($42.49) a megawatt hour (MWh).
* The same French price lost 14.3 percent to 42 euros/MWh.
* Electricity production from German wind turbines is due to pick up to 4.7 gigawatts (GW) from 1 GW expected on Thursday, Thomson Reuters data showed.
* Solar power availability will fall 1.2 GW to 6.6 GW, remaining in a 6-7 GW range probably up to July 19.
* German demand is expected to fall 900 MW to 61 GW and that in France edge 100 MW up to 48.7 GW day-on-day, due to pronounced temperature gains in the French market that is sensitive to higher use of power in air conditioning.
* Summery temperatures with averages of 21.9 degree Celsius expected in Germany on Friday and 25.8 degrees in France will give way to cooler conditions next week. Those in Germany could drop by around 3 degrees and in France around 6.
* French nuclear availability has increased by nearly 5 percentage points to 66.8 percent overnight as utility EDF restarted power stations.
* Along the curve, forward electricity contracts revisited, but did not breach, their highest levels since late February that they hit on Wednesday along with a coal price rally. Coal accounts for over 40 percent of German generation.
* The benchmark German Cal '18 for next year-delivery was 0.3 percent up from its Wednesday close at 31.33 euros/MWh.
* The equivalent French year-ahead contract rose 0.1 percent to 37.15 euros/MWh.
* Coal cif North Europe gained 0.5 percent to $72.25 per tonne, its highest since November 2016.
* Germany's BayernLB bank said in a research note that firm coal, driven by Chinese import needs, would continue to give backing to the power curve benchmarks, pegging coal overhead resistance at $73, then $76.5.
* Related carbon pollution rights, which electricity generators must hold for their output, increased by 1 percent to 5.09 euros a tonne.
* In eastern Europe, the Czech contract for Friday shed 1.8 euros to 38 euros/MWh, and the year-ahead 2018 contract nudged 10 cents up to 32 euros/MWh.
* ($1 = 0.8801 euros) (Reporting by Vera Eckert; Editing by Mark Potter)