August 21, 2012 / 1:27 PM / 5 years ago

Europe Power-Spot eases, hot spell to end

* Prompt prices respond to falling temperatures
    * Peaktime prices down sharply
    * Forwards tick up on firmer fuels

    FRANKFURT, Aug 21 (Reuters) - European over-the-counter
electricity spot prices eased on Tuesday as temperatures started
declining after a brief heat wave that peaked over the weekend.
    Traders said that air conditioning demand was weakening and
German wind power supply was due to rise from the second half of
the week onwards.
    But supply tightness continued in France's nuclear sector,
underpinning the medium term and keeping French contracts at a
premium. 
    Germany's Tuesday delivery baseload for 24-hour
power was down 6.30 euros on the day to 51.50 euros ($64) per
megawatt hour, while the equivalent French contract was
off 5 euros to 52.50.
    Peakload prices for daytime delivery fell sharply with
French day ahead down 9.50 euros at 56.60 euros and German
Wednesday delivery down 10.60 euros at 55.10.
    Temperatures in Germany will be 20 to 25 degree Celsius on
Friday compared with 28 to 34 degrees on Monday as the current
high pressure front is moving away to the south east, German met
office DWD said.
    It added that there will be plenty of showers. French
temperatures are also forecast to fall a few degrees by
mid-week.
    Temperatures in the region were up to 37 degrees at the
exceptionally hot weekend in Germany and even higher than those
in France, where authorities in the central and northern regions
were on alert for heat.
    French grid operator RTE reported that a third of nuclear
capacity is currently offline. Bugey 3 was reported overnight as
offline for two days to Aug. 22, Cruas was reported as having
returned, and three restart dates this week were prolonged
slightly. 
    Along the power forwards curve, Germany's benchmark 2013
contract for baseload delivery next year gained 10
cents to 49.60 euros. The equivalent French contract also rose
10 cents to 51.60.
    Oil rose on hopes a strategy being drawn up by the European
Central Bank would help tackle the euro zone debt crisis, and
was supported by ongoing tension in the Middle East and tight
North Sea supply. 
    Gas, coal and carbon prices were also higher.
    The Leipzig-based EEX issued its first half 2012 trading
results today. It said it will continue to seek more
diversification beyond power, having decided to spin off the gas
business into a new separate company earlier this year.
    Among coming projects are as yet unspecified green power
products, and day futures trading, which could be introduced
this year. 
($1 = 0.8103 euros)

 (Reporting by Vera Eckert; editing by Keiron Henderson)

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