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Prompt lifted by renewables forecasts; demand outlook bearish

Prompt lifted by renewables forecasts; demand outlook bearish


FRANKFURT, July 19 (Reuters) – European spot electricity prices rose on Wednesday, with gains made on the back of lower projected output for wind and solar power capped by a drop in temperatures that is expected to reduce demand for air conditioning, traders said. * The German baseload spot electricity contract for Thursday delivery rose 7.9 percent to 38.40 euros ($44.27) per megawatt-hour (MWh). * The French day-ahead spot price for Thursday was at a similar level, gaining 3 percent on the day to 38.50 euros/MWh. * Thomson Reuters data showed that German solar power output is expected to decline by 2.4 gigawatts (GW) day on day to 5.8 GW, and wind power by 0.5 GW to 5.8 GW. * A number of bearish factors are stacked up against a bullish trend, including French nuclear power supply’s increase by 4.1 percentage points to 70.3 percent of maximum capacity. .
* Demand is expected to ease in France by 1.6 GW to 48.4 GW on Thursday while holding steady in Germany at about 61 GW.
* Temperature falls of 1.4 degrees Celsius in Germany and 2.7 degrees in France are expected to reduce power demand for air conditioning.
* Power curve business showed little volume or prices movement, with coal producing no trades and oil and carbon pointing south.
* The benchmark German electricity contract for 2018 dipped by 5 cents to 31.70 euros/MWh.
* The equivalent French year-ahead contract was untraded after a 37.30 euros close.
* Dec ’17 expiry EU carbon emissions rights eased by 0.4 percent to 5.44 euros a tonne, while coal cif North Europe was in a bid-ask range of $73.10 to $73.35 a tonne.
* In eastern Europe, the Czech Thursday contract rose by 1.25 euros to 56.25 euros/MWh. The year-ahead contract was up 5 cents at 32.40 euros/MWh.
* Leading continental European energy bourse EEX reported on Tuesday that volumes in its electricity products dropped 17 percent in the first half of 2017 because of uncertainty created by regulators’ plans to split the German and Austrian joint trading zones next year.

Anand Gupta Editor - EQ Int'l Media Network


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