Spot Power Mixed as High Wind Levels Depress Prices
Central European spot power was mixed on Monday, although high levels of wind generation in the region kept prices low, traders said.
On regional exchanges, electricity for Tuesday gained almost 5 percent to 18.28 euros ($22) per megawatt hour in the Czech Republic and Slovakia as wind levels eased and consumption rose. Day ahead in Hungary and Romania fell 12 percent to 28.87 euros.
Wind levels in Germany, the main driver for prices, fell 5 gigawatts to 22.8 gigawatts for Tuesday. While the drop helped support Czech and Slovak prices, the output kept spot prices low, according to Thomson Reuters Point Carbon data.
"Consumption is picking up during off-peak I due to the full working day tomorrow, however with mild temperatures, high wind and more thermal availability, we still expect some negatively priced hours in the first hours of the day tomorrow," Point Carbon analysts wrote.
Further along the curve, the Czech front month fell 20 cents to 36.55 euros and Hungarian electricity for January declined 45 cents to 45.75 euros.
Delays to a new energy law in Serbia have postponed the start of a Belgrade-based regional spot power exchange to at least the third quarter of 2015, an official of Serbia's grid operator said.
Ukraine may stop supplying electricity to separatist-held eastern regions if the territories do not adhere to consumption limits imposed across the country due to an energy crisis, an energy ministry official.
Day-ahead power on Poland's POLPX exchange rose to 136.59 zlotys ($39) from 131.72 zlotys as bourse data showed power plant outages were expected to fall to 3.9 gigawatts from 4.1 gigawatts.
Oil fell towards $61 a barrel on Monday, reversing gains after Saudi Arabia indicated it could increase its output.
Reporting by Michael Kahn