Spot, curve prices rise on lower wind, firmer CO2

European prompt power prices rose on Wednesday as a big drop in wind speeds from previous high levels reduced supply, while firmer carbon and stable oil lent support to the forwards market.

German Thursday delivery baseload power (TRDEBD1) rose 47.5% to 133.5 euros ($145.42) per megawatt hour (MWh) by 1155 GMT.

The equivalent French contract (TRFRBD1) gained 6.6% to 154.5 euros/MWh.

German wind power production is forecast to plummet to 27.1 gigawatts (GW) on the day-ahead from 42.9 GW expected on Wednesday, Refinitiv Eikon data showed.

French nuclear availability was up by one percentage point at 78% of available capacity.

French energy worker unions plan new strikes over pension reform on Feb 6-7 and Feb 11 having last reduced power supply on Tuesday over the issue.

Power demand in Germany is projected to decrease by 500 MW day-on-day to 63.1 GW and France will likely see demand go down to 64.4 GW from 67.1 GW in that period.

Along the curve, German 2024 baseload (TRDEBYZ4) added 2.6% to 182.1 euros/MWh.

The equivalent 2024 French position (TRFRBYZ4) was 0.1% down at 193.8 euros/MWh.

European CO2 allowances for December 2023 expiry (CFI2Zc1) were 2.7% up at 95.56 euros a tonne.

Auditors said on Tuesday that European Union attempts to link up countries' power markets across the bloc have been foiled by complex rules and weak governance.

Their analysis comes ahead of new EU reform attempts to overhaul power market regulation and price-setting.

Germany's economy minister presented a report showing how long-term power supply security can be guaranteed over 2025-2031, ahead of a government strategy plan on the issue due in the first half of 2023.

Germany's energy regulator has launched a tender for 7 GW worth of offshore wind turbines in four areas in the North and Baltic Seas.

($1 = 0.9180 euros)