Spot Falls on Strong Renewable Output, Weaker Demand

Posted by Michelle Howard May 9, 2014

Forecasts for lower consumption and strong renewable power output drove Central European day ahead power prices lower on Friday, traders said.

On regional exchanges, Czech and Slovak power for delivery on Thursday declined 18.3 percent to 23.51 euros ($32.59) per megawatt-hour (MWh) while the Hungarian equivalent fell more than 6 percent to 33.19 euros.

Wind power generation is forecast at around 8.6 gigawatts (GW) on Saturday and solar power output is seen at nearly 6 GW, Thomson Reuters Point Carbon data showed.

Further along the curve, the Czech front year contract gained 0.22 percent 33.73 euros and the Hungarian Cal '15 rose 0.24 percent to 42.50 euros in a slow trade on Friday.

The benchmark German Cal '15 contract increased 14 cents to 34.50 euros on Germany's EEX exchange.

Day ahead on Poland's POLPX increased to 149.07 zlotys ($49.39) from 177.33 zlotys.

Brent crude rose above $108 per barrel on Friday, supported by tension in Ukraine and limited supply from Libya, where a recent deal to reopen oil export terminals was expected to fall through.

European Union carbon futures rose 7 cents to 5.26 euros a tonne.

($1 = 0.7214 Euros) ($1 = 3.0184 Polish Zlotys)

(Reporting by Maja Zuvela; editing by Jason Neely)