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Europe Power-Tight supply lifts spot prices
May 30, 2012 / 1:17 PM / 6 years ago

Europe Power-Tight supply lifts spot prices

* Lower renewables, nuclear output on the cards
    * Temperatures to fall
    * Mixed macro-economic picture

    FRANKFURT, May 30 (Reuters) - European spot electricity
prices rose on Wednesday due to lower wind and solar power
forecasts in Germany and ongoing nuclear tightness in France,
traders said.	
    "Temperatures are falling to boost demand, which together
with the lower supply is driving prices higher," one said.	
    Thursday delivery electricity contracts for baseload gained
one euro in the German over-the-counter market, trading to 47
euros a megawatt hour, while in France, the same
contract rose by 1.25 euros to 49.25 euros.	
    German solar power projections were falling to below 10,000
MW of peaktime capacity use compared with over 15,000 MW seen in
the recent sunny weather.	
    Wind power was set to linger below 5,000 MW over the next
two working days, only picking up to above that level on
Saturday, according to weather data.	
    The data showed that a cool air complex is nearing north
west Europe, bringing temperatures down to 13 to 18 degrees on
Saturday, well below the 14 and 25 degree range on Wednesday.	
    Forwards power prices fell along with all other fuels and
with carbon, having only rebounded hesitantly earlier in the
week from last week's lows.	
    Germany's 2013 delivery contract for baseload shed 40 cents
to 49.15 euros on the day and the equivalent French
contract edged 5 cents lower to 50.45 euros.	
    Crude oil fell towards $105 a barrel as fears intensified
about the future of Spain's banks, while China signalled it was
not planning a large stimulus package. 	
    Euro zone economic sentiment fell by more than expected in
May to its lowest level in nearly three years, strengthening the
view that the single currency bloc's economy will contract in
the second quarter. 	
    But German companies polled in a thrice-yearly survey saw
business expectations and investments improving, due to demand
from Asia among other reasons. 	
    Coal, gas and carbon prices also posted losses.	
 (Reporting by Vera Eckert. Editing by Jane Merriman)

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