Euro Power Prices Ease
- Solar to stay at healthy output levels
- Friday demand projected down on the day
- Curve a tad lower, most
European prompt power prices eased on Thursday on lower demand ahead of the weekend and sustained high solar production which outweighed low wind power output.
The German baseload power contract for delivery on Friday was down 2.80 euros on the day to 33.20 euros ($45.3) per megawatt hour.
The equivalent French contract was down 65 cents at 31.75 euros/MWh.
German solar power output was expected to be 8.6 gigawatts (GW) for Friday, down slightly from this week's peak of 9.3 GW on Thursday but still very healthy.
Wind power output was seen lingering at just 2 GW on Friday, down 0.7 GW from Thursday, in a mini-heatwave with daytime temperatures in excess of 30 degrees Celsius.
Germany's electricity demand was expected to drop by 0.5 GW to 59.4 GW on Friday and in France to lose 0.2 GW.
Prices along the power forwards curve were a touch weaker, tracking lower prices of Brent crude oil, coal, carbon and gas.
The German Cal 2015 baseload power contract for next-year delivery was 10 cents down at 34.45 euros/MWh.
The equivalent French contract was down 5 cents at 41.65 euros per MWh.
In political news, EU authorities are negotiating with Berlin to try to make its new green energy law compatible with EU legislation and a solution is possible this month, the bloc's competition chief said.
Fitch Ratings said European power utilities have factored in much of the sector's structural crisis, adding most current ratings and outlooks were likely to be kept steady in the near term.
Rival Moody's (MCO) on Wednesday had pointed to weak power price forecasts across Europe.
($1 = 0.7331 Euros)
(Reporting by Vera Eckert, editing by Jason Neely)