FRANKFURT: European prompt power prices were mixed on Wednesday while German power forwards set new highs amid an oil rally and strong gains in the related carbon permits market.
Spot prices in Germany fell due to forecasts for more wind power supply while those in France rose on sustained cool weather, which underpinned demand.
German Thursday baseload was off 5.8% at 236.5 euros ($248.80) a megawatt hour (MWh) at 0800 GMT while its French equivalent had risen by 3.5% to 237 euros, giving it a slight premium over its neighbour.
French prices are robust due to a range of corrosion issues at its fleet of nuclear reactors that is clouding prospects for stable supply in the nuclear-dependent country.
Short-term production levels for wind power were forecast to be 600 MW higher in Germany and 400 MW in France day-on-day to Thursday, Refinitiv Eikon data showed, pegging Germany's anticipated output at 3.6 gigawatts (GW) and France's at 2.6 GW.
German inflation hits 40-year record in April
French nuclear availability rose by 1.5 percentage points to 52.9% of installed capacity.
Power usage was expected to rise 200 MW in Germany day-on-day to stand at 56.4 GW on Thursday, and France was seen climbing 100 MW to 47.1 GW.
German year-ahead power was 4.5% up at 215 euros, a contract high amid strong gains across other monthly, quarterly and annual contracts.
On Tuesday, a strong European carbon allowances auction combined with assumptions there will be more demand for coal-fired power generation triggered upward moves in carbon andpower.
The French 2023 power contract did not change hands , having closed at 258.3 euros.
European CO2 allowances for December 2022 expiry increased by 0.2% to trade at 88.32 euros a tonne, having gained 8% on Tuesday.
In the gas sector, eastbound gas flows via the Yamal-Europe pipeline to Poland from Germany resumed on Wednesday. Gas supply uncertainty is spilling over into power markets because gas-burning plants are affected.
The EPEX SPOT power bourse said that it traded 49.4 terawatt hours on its intraday and day-ahead markets in April, 3% less than a year earlier.