German prompt power prices fall further on strong wind forecast

London (Platts)--22 Jan 2016 951 am EST/1451 GMT

German prompt power prices retreated further Friday with temperatures and wind power output set to rise strongly after a short-lived cold spell and below average wind power output lifted spot prices this week to their highest level in over a year.

Conversely on the forward curve, contracts recovered from heavy losses earlier this week on a change in sentiment across global commodity markets.

Baseload power for weekend delivery was last heard at Eur25.50/MWh, down Eur1.50 from Thursday's close with Saturday baseload last heard at Eur28/MWh. Epex Spot settled Saturday just above OTC at Eur28.28/MWh.

Baseload power for Monday delivery was heard before midday local time at Eur33/MWh, down Eur3.50 from Friday's close on Thursday with Monday peakload down Eur3.75 at Eur40/MWh.

Day-ahead peakload for Thursday jumped to Eur75.50/MWh, its highest since December 2014, as the cold snap also coincided with a strike in France.

Week-ahead contracts fell Eur3 to trade at Eur24.25/MWh, down from above Eur31/MWh on Monday and a Eur35/MWh close for this week last Friday.

Wind power output was forecast just below 10 GW this weekend, dipping slightly Monday, but could potentially rise above 20 GW from Wednesday, according to spotrenewables' 7-day outlook.

Conventional plant availability from nuclear, coal and lignite was forecast to drop below 42 GW for Monday, down from just below 45 GW availability Friday, EEX transparency data showed.

German year-ahead power rebounded Eur1 from Thursday's intra-day lows, when the contract traded below Eur23/MWh for the first time since early 2002 as Thursday's late rally in oil lifted sentiment across the wider sector with EUA carbon allowances rebounding sharply, but still trading below last Friday's levels, when the contract entered bear market territory.

German Cal 17 baseload traded at Eur23.70/MWh by noon London time, while EUA carbon allowances traded at Eur6.42/MWh.

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