German, French day-ahead power prices rebound as lower wind caps bearish sentiment

London (Platts)--13 Sep 2017 744 am EDT/1144 GMT

German and French day-ahead power prices rebounded Wednesday as the bearish influence of strong wind supply eased, while a lower wind forecast revision saw German week-ahead power prices rally, sources said.

  • German wind, solar output to fall 34 GW
  • French solar steady, wind down 1 GW Thursday
  • Weak wind, high demand lifts German week-38

Baseload power for Thursday delivery was last heard trading at Eur23.50/MWh, rising Eur8.50 from the previous close, while the peakload day-ahead contract surged to Eur33.25/MWh, regaining most of Tuesday's losses to end Eur16 higher on the day.

In France, base was at Eur31.50/MWh, up Eur3.75/MWh on the day, and peakload jumped Eur5/MWh to Eur38.25/MWh.

The EPEX spot day-ahead auction saw both French and German settlement prices lower than OTC Wednesday. French base and peak spot cleared at Eur29.52/MWh and Eur35.38/MWh, respectively, while the German base and peak day-ahead settled at Eur22.69/MWh and 32.09/MWh, respectively.

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French demand during peak times for Thursday is set to be 54.5 GW from Wednesday's 55 GW, according to French national grid operator RTE.

French wind power for Thursday was set to drop 1 GW to 6 GW from 7 GW for Wednesday, according to spotrenewables. Solar output is set to be 1.7 GW for Thursday, nearly steady from Wednesday's 1.5 GW, data from the same source showed.

Combined wind and solar power production in neighboring Germany is expected to drop to 34 GW for Thursday, from Wednesday's forecast of nearly 41 GW.

On the nuclear power front, French nuclear regulator ASN said it placed the 2.6 GW Belleville nuclear plant under strengthened supervision due to the deterioration of safety levels observed since 2016 and the absence of significant improvement by operator EDF to date.

In Germany, short-term power prices for next week delivery are trading higher on the back of "low wind levels and low temperatures," which lifted the residual load, a trader said.

"Residual load in Germany goes up to 66 GW next Monday," he said, comparing it with the highest hourly demand of 45.5 GW for Thursday.

The week-ahead base power contract bounced back to Eur36.60/MWh in Wednesday morning trade, up Eur1 on the day, while peakload traded 85 euro cent higher at Eur42.90/MWh.

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