GERMAN POWER: Prompt gains as wind drops, Cal slides below Eur42
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
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
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
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
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."