Curve at three-month high with coal, carbon; prompt down

FRANKFURT: European forward power prices were lifted by gains in the related carbon and coal markets on Tuesday, with the German Cal '18 benchmark at a three-month high, while spot prices buckled under the weight of surging German wind power supply.

German baseload delivery in 2018, the European year ahead benchmark, rose to 30.95 euros ($34.81) a megawatt hour (MWh), 13 cents up from its Monday screen-trading close.

This was up 55 cents from its Friday settlement on Europe's last working day prior to the three-day break over the Whitsun weekend, and the highest level since March 2.

The equivalent French contract gained 15 cents to 36.5 euros.

North Europe coal for 2018 delivery gained 1.5 percent to $69 a tonne. The market has been rising on tighter global supply and decreasing stock levels.

The December expiry EU carbon contract rose 0.2 percent to 5.18 euros a tonne.

Prompt power prices were down on forecasts for a doubling of German wind power volumes to Wednesday, which outweighed the effects of modest solar production and returning demand.

German spot power for Wednesday, at 14.75 euros/MWh, was 55 percent down against the price paid for Tuesday.

French day-ahead delivery fell by 25.4 percent to 25 euros compared with the Tuesday price.

Available French nuclear power capacity is down at just over 59 percent from 64.6 percent last Saturday, with a number of plants now in their typical summer maintenance period.

The German Brokdorf reactor will now be out 9 days longer, possibly restarting on June 25 after extended maintenance, latest data from the EEX bourse showed.

Switzerland's Goesgen plant closed on Sunday for maintenance until the start of July.

Thomson Reuters data showed German wind power volumes rising to 27 gigawatts (GW) on Wednesday from an expected 13.6 GW on Tuesday and 3.6 GW recorded on Monday.

German solar output predictions were uncertain but daily levels should remain below 7-8 GW in the coming days, traders said.

Electricity demand on Wednesday will likely rise by 1.4 GW in France to 47.8 GW and by 1.2 GW in Germany to 61.8 GW.

In Eastern Europe, the Czech day-ahead contract traded at a flat 35 euros/MWh. The year-ahead contract was 17 cents down at 31.35 euros.