FRANKFURT, Feb 22 (Reuters) – European spot electricity prices turned slightly negative on rising supply factors, having started Wednesday’s session slightly higher on higher demand indicators.
Refinitiv Eikon analysts suggested a slightly bearish outlook on the basis of the supply factor rise.
German day-ahead baseload power traded at 145.5 euros ($154.78) per megawatt hour (MWh) at 1020 GMT, 0.7% below the previous close.
The equivalent French contract was at 147.8 euros, down 0.5%.
German wind power was projected to rise to 9.8 gigawatts (GW) on Thursday from 5.5 GW expected for Wednesday, Refinitiv Eikon data showed.
French nuclear availability increased two percentage points to 73% of available capacity.
Demand was forecast to rise by 900 MW in Germany to 61 GW day-on-day, and in France to jump 2.3 GW to 57.6 GW, the data showed.
The French data reflected an anticipated fall in average 24-hour temperatures of one degree Celsius to 8.6 degrees by Thursday.
Along the forwards curve, German year-ahead baseload lost 2% at 150 euros/MWh, tracking weaker oil and carbon.
French 2024 delivery was untraded after closing at 170 euros.
European CO2 allowances for December 2023 expiry were down from just reached contract highs of above 100 euros this week, shedding 1.9% at 98.43 euros a tonne.
Florian Rothenberg, Senior Analyst EU Power & Carbon Markets at ICIS, said unless the 100 euros level persisted for a few weeks, it might be a short-lived technical break out.
He said that speculative positions have increased significantly since the start of the year.
Official data showed European Union gas use plunged by 19.3% from August to January compared with the five-year average for the period, which analysts said resulted from mild weather, government measures to curb usage and high market prices.
Elsewhere, Germany has identified three measures, including financial support, to boost energy transition technologies while scaling up green power production and its transmission. ($1 = 0.9400 euros) (Reporting by Vera Eckert; Additional reporting by Forrest Crellin; Editing by Alexander Smith)
