London (Platts)--5Feb2013/904 am EST/1404 GMT

German prompt power prices gained Tuesday as wind output was forecast to fall more than 10 GW Wednesday, tightening supply margins, according to market sources.

Baseload power for delivery on Wednesday was last heard OTC before noon London time at Eur45.75/MWh, Eur12.95 higher than Monday's price for Tuesday. Day-ahead peakload power was last at Eur54.75/MWh, advancing Eur14.25 on the day.

Epex Spot settled Wednesday contracts above OTC, at Eur46.83/MWh baseload and Eur55.51/MWh peakload. Day-ahead peakload was aligned with the exchange's settlement for the neighboring French market, where colder temperatures were said to be pushing up demand.

Wind power generation was forecast to average just 4.5 GW during baseload hours Wednesday, a market source said, down from a 16 GW estimate for Tuesday, when wind output reached more than 20 GW in the early off-peak hours.

The source said wind "alone" explained the gap between Tuesday and Wednesday prices and that there was "no other reason" for the uptick.

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In conventional supply, available plant capacity was expected to be around 1 GW higher Wednesday. EEX transparency pegged nuclear holding at its full 12.1 GW, lignite a touch up on the day at 19.8 GW and hard coal rising around 800 MW at 16.3 GW.

Temperatures will begin to fall below the seasonal norm Wednesday, with CustomWeather pegging Dusseldorf at 2 degrees Celsius below the norm, dropping to 5 C below by Saturday.

On the curve, a continued downturn in March contracts fed through to prices further forward, reversing some of the gains posted over the two previous sessions.

By lunchtime, March baseload had shed 65 euro cent from Monday's close to Eur39.10/MWh, while Q2 base was trading 40 euro cent lower at Eur37.40/MWh.

"We have a little cool weather now and then it will be mild again so March can't go any higher," a trader said.

At the far end, Cal 14 base moved back below Eur42/MWh in morning trade, last heard 25 euro cent lower at Eur41.85/MWh around midday but was firming again into the afternoon session.

"It's up and down with emissions," said the same trading source. "Volumes are very thin and the Cal is being pushed a bit by smaller companies who are getting nervous."

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