PRAGUE, Feb 5 (Reuters) - Forecasts for a massive drop in
wind generation lifted central European spot prices on Tuesday
while uncertainty in carbon markets helped keep the Cal '14
volatile, traders said.
On regional exchanges, Czech and Slovak electricity for
Wednesday surged 33 percent to 43.58 euros ($59.09) per megawatt
hour while Hungarian day ahead cleared the daily auction at
The three central European countries linked their day-ahead
markets last September, but prices have diverged frequently
since then, with Hungary often trading higher.
In the over-the-counter market, Czech day-ahead traded at
44.85 euros, representing more than a 1 euro discount to
neighbouring Germany. Day ahead in Hungary, where tighter
cross-border capacity and low Balkan water levels have affected
prices, rose to 46 euros.
Renewable supply was the big driver as data from Thomson
Reuters Point Carbon showed forecasts for wind generation in
Germany tumbling more than 8 GW to 11.8 GW.
'Wind power production is expected to drop massively
tomorrow,' Point Carbon analysts wrote. 'The bullish signal is
strongest for the first half of the day.'
Further along the curve, the Czech Cal '14 contract gave
back strong gains from the previous session, falling 10 cents to
41.35 euros on the Prague-based Power Exchange Central Europe.
Traders said the contract was volatile due to uncertainty
over whether EU lawmakers will come up with a plan to support
the carbon market and the fact many traders were away at an
industry conference in Germany.
'It's volatile now with the conference and all the political
decisions,' one trader said. 'The contract will likely bounce
In the region, the benchmark German Cal '14 contract was
unchanged at 41.90 euros in afternoon trade on Germany's EEX
Serbian power utility Elektroprivreda Srbije (EPS) plans to
produce 35,000 gigawatt-hours (GWh) of electricity in 2013, up 1
percent from 2012 due to better use of coal-fired plants, an EPS
Serbian water levels are forecast to rise through Feb. 12,
Serbia's hydrometeorological service said in a weekly forecast.
The Freising, Germany-based Central Allocation Office GmbH
(CAO) has offered capacities for its auction for cross-border
capacity in March in the CEE region.
Poland's utilities will have 2.2 gigawatts of power offline
for planned maintenance on Thursday, data from grid operator PSE
Day ahead on Poland's POLPX exchange rose to 161.57 zlotys
Oil rose towards $117 a barrel, resuming its three-week
rally, as investor concern faded about political risks in the
euro zone that had prompted a sell-off of riskier assets in the
The benchmark EU carbon contract, EU Allowances for December
delivery, rose more than 2 percent to 4.42 euros in
($1 = 0.7376 euros)
($1 = 3.0748 Polish zlotys)
(Reporting by Michael Kahn; editing by Jason Neely)
Keywords: MARKETS CEE/ELECTRICITY
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