FRANKFURT, May 13 (Reuters) - Forward power prices traded
near recent eight-year lows on Monday in the European wholesale
market as most related fuels prices drifted down and German
prompt power prices came in below expectations.
Germany's Cal 14 baseload power contract was at
38.40 euros ($50.0) a megawatt hour, down 20 cents from last
Friday in over-the-counter (OTC) trading.
This was just 15 cents above the most recent Cal '14
contract low reached in the OTC market on May 2.
It was also 15 cents above the year-ahead contract low
reached on the EEX bourse on May 2. The bourse is less
liquid but corresponds closely with OTC prices.
The same French OTC power contract was at 41.50
euros, down 15 cents from Friday.
'There is little support in the forwards market and prompt
prices are disappointing,' a German trader said.
Oil, coal and carbon were slipping on a
globally subdued demand outlook for energy. Also, it remains
uncertain whether there will be intervention in the EU's ailing
carbon market to prop up prices.
Prompt power in Germany failed to respond to higher
industrial demand after a holiday period, low temperatures for
the time of year, which should have boosted heating
requirements, and a nuclear outage continuing for a day longer.
Traders attributed this to ample renewable power supply.
Wind power will be around 10 GW during daytimes in the first
half of the week and solar midday peaks will hit between 15 GW
and 20 GW in that period, according to weather reports.
German baseload power for Tuesday was at 34.00
euros, down 50 cents from levels paid for Monday.
By contrast, the same French contract was
indicated at 33.50 euros, up 4.50 euros from prices paid in
France for Monday. This is due to the greater exposure of the
French market to electrical heating demand.
Temperatures have fallen to below-normal levels in much of
France and Germany. They were between 12 and 18 degrees across
Germany while Paris saw just 9 to 14 degrees.
In nuclear outages news, German utility E.ON started a
long-announced maintenance standstill at its Grafenrheinfeld
reactor at the weekend, its website showed.
It also indicated that E.ON plans to bring the Grohnde
reactor back online after its outage one day later than planned
on May 14.
($1 = 0.7709 euros)
(Reporting by Vera Eckert; Editing by Alison Birrane)
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