Prompt prices soar on lower wind, nuclear supply
FRANKFURT, Oct 16 (Reuters) -European wholesale power prices leapt on Wednesday, as day-ahead wind power output in Germany was seen falling by a third and halving in France, while French nuclear availability tightened.
"Wind power supply plummets in all of Central Western Europe, underpinning a bullish signal for tomorrow's outlook," said LSEG analyst Riccardo Parviero.
German baseload power for the day-ahead TRDEBD1 was up 81.2% up from its previous close of 67.5 euros ($73.44) per megawatt hour (MWh) by 0745 GMT, LSEG data showed.
The equivalent French contract TRFRBYZ5 traded at 54.5 euros/MWh, up 69.0%.
Wind power generation in Germany is set to fall to 21.3 gigawatts (GW) on Thursday from 31.7 GW forecast for Wednesday, while in France, the projected volume is seen falling to 4.8 GW from 10.1 GW in the same period.
Solar power production was also due to see lower levels in the region while demand was flat overall.
French nuclear capacity availability stood at 71% of the installed total, two percentage points below the level earlier this week. POWER/FR
Along the forwards curve, the German front year baseload contract TRDEBYZ5 edged up by 0.1% to 88.8 euros/MWh.
The equivalent French contract was untraded after closing at 75.7 euros/MWh.
In the European carbon market CFI2Zc1, the benchmark contract rose by 0.3% to 65.28 euros a metric ton.
The German government has earmarked up to 2.8 billion euros to support 15 industrial companies in their bid to decarbonise under its first round of "climate protection contracts," whereby it covers the price difference between a required CO2 price and actual CO2 permit prices over 15 years.
A second tender will open later this year.
The world is on the brink of a new age of electricity with fossil fuel demand set to peak by the end of the decade, the International Energy Agency said.
($1 = 0.9191 euros)
Reporting by Vera Eckert; Editing by Varun H K
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