Spot sharply higher on German wind downturn, colder weather
FRANKFURT, Nov 28 (Reuters) -European prompt power prices jumped on Thursday on forecasts for plummeting German wind generation volumes while colder weather was on its way, lifting demand for electric heating in France.
"Tomorrow's outlook is bullish, underpinned by dropping temperatures in Central Western Europe, together with cratering wind power supplies in Germany," said LSEG analyst Riccardo Parviero.
German day-ahead baseload power TRDEBD1 was up 50% at 145.5 euros ($153.40) per megawatt hour (MWh) at 0905 GMT, a two-week high, LSEG data showed.
The equivalent French contract TRFRBD1 was up 9.3% at 114.8 euros/MWh.
German wind power output is projected fall by three-quarters to 9 gigawatts (GW) on Friday, after being set to come in at 37.4 GW on Thursday, LSEG data showed.
French nuclear availability fell three percentage points to stand at 82% of total capacity. POWER/FR
On the demand side, power consumption in Germany is forecast to drop by 1 GW to 61.3 GW ahead of the weekend, but in France, it is set to increase by 2.3 GW to 58.3 GW.
Temperatures in both countries will likely fall by 1 degree on average next week.
Along the forwards curve, German year-ahead power TRDEBYZ5 edged up 0.2% to 97.9 euros/MWh, while the French 2025 baseload contract TRFRBYZ5 was untraded after a close at 77 euros.
European CO2 allowances for December 2024 CFI2Zc1 shed 0.3% at 68.25 euros per metric ton.
German state-owned utility Uniper raised its full year 2024 adjusted EBITDA outlook due to the settlement of legal disputes, which boosted its share price.
Austrian energy firm OMV could legally terminate a gas supply deal that runs until 2040 with Russia's Gazprom, a legal expert said.
($1 = 0.9485 euros)
Reporting by Vera Eckert, Editing by Kim Coghill
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