EUROPE POWER-Spot mixed amid tighter renewables, lower demand

FRANKFURT: European prompt power prices were mixed on Tuesday as those in France rose on tighter renewable supply while Germany's fell on a drop in demand due to a holiday in parts of the region.

German baseload for Wednesday was down 0.5% at 53.5 euros ($65.69) per megawatt hour (MWh) at 1055 GMT, while the equivalent French contract was up 5.6% at 66.3 euros.

German wind power output this week was forecast to drop more steeply than previously predicted, Refinitiv Eikon data showed.

It will decrease by 2.8 gigawatts on Wednesday to total 13.9 GW that day when France should lose 1.2 GW to produce 1.5 GW.

Solar production is negligible in both countries.

French nuclear availability remained at 85.7% of installed capacity.

On the demand side, Germany will likely see a day-on-day drop to 58.8 GW, down from 61.1 GW, as its southern regions will close for Epiphany, a holiday that is also observed in Austria and parts of Switzerland.

France will be open but its consumption will be down 900 MW at 80.2 GW.

Along the curve, German Cal '22 baseload was down 1.4% at 50 euros, having touched its highest level since September 2019 on Monday.

French 2022 supply was untraded after settling at 52.6 euros.

December 2021 expiry European CO2 allowances shed 0.7% to 33.45 euros a tonne, still near record highs.

Hard coal for northern European delivery in 2022 did not change hands after a settlement at $72.8 a tonne.

A study from Cologne research institute EWI said average German day-ahead power prices dropped 19.1% to 30.47 euros/MWh last year in a coronavirus-related drop in usage by 3.2%. EWI also cited lower fuels prices and more renewable output.