EUROPE POWER-Fall in wind supply lifts prompt prices

·2 min read

FRANKFURT, May 24 (Reuters) - European spot power prices rose on Tuesday as lower wind production volumes were predicted in Germany and France while near-term demand was broadly flat.

Germany's day-ahead baseload power stood at 180.5 euros ($193.37) per megawatt hour (MWh) at 0930 GMT, up 15.7%.

The equivalent French price was 187 euros, which was up 3.6%.

Supply from German wind turbines on the day-ahead was forecast to drop by 7.5 gigawatts (GW) to a total 15.2 GW, and in France was seen losing 300 MW to 4.6 GW, Refinitiv Eikon data showed.

French nuclear power availability remained at 50% of total installed capacity.

Power demand in Germany was seen gaining 900 MW on the day to 58.1 GW, while in France it was set to drop 700 MW to 45 GW.

The German front-year contract added 1% to reach 223.9 euros/MWh, while its French counterpart was untraded after closing at 302.5 euros.

European CO2 allowances for December 2022 expiry increased by 2.1% to 79.8 euros a tonne.

In related fuels, gas supply has been stable of late and milder weather has ushered in weaker demand but concerns that Russia could disrupt or halt flows, either as a political weapon or over payment terms, have a knock-on effect on the wider power sector.

Eastward flows on the Yamal gas pipeline out of Russia via Poland eased early on Tuesday but Russian deliveries via Ukraine increased.

Germany is planning to use coal-fired power stations which would have been idled this year and next as reserve facilities in case of disruption to gas supplies from Russia, economy ministry sources said.

Elsewhere, French nuclear operator EDF announced a strike notice throughout the day Thursday June 2.

Recent strikes have not had a major impact on nuclear power production in the country. ($1 = 0.9334 euros) (Reporting by Vera Eckert, additional reporting by Forrest Crellin, editing by Kirsten Donovan)

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