EUROPE POWER-Prompt prices fall on expected wind power influx - Nasdaq

EUROPE POWER-Prompt prices fall on expected wind power influx | Nasdaq

FRANKFURT, Oct 17 (Reuters) - European spot power prices fell sharply on Tuesday as more wind power supply was expected in the major markets, with demand patterns diverging.

"The signal for tomorrow is bearish, and higher wind production, both in Germany and the central western European area is the main driver of the signal," said LSEG analyst Naser Hashemi.

German day-ahead baseload power TRDEBD1 traded at 100.5 euros ($106.05) per megawatt hour (MWh) at 0925 GMT, down 24.7% from Monday's close.

The equivalent French contract TRFRBD1 was trading at 65.5 euros, down 44.5%.

Wind power supply in Germany is forecast at 14.5 gigawatts (GW) on Wednesday, more than double the 4.1 GW expected for Tuesday, LSEG data showed. French wind output will likely be 11.0 GW, up from 6.4 GW.

Along the curve, the German year-ahead contract TRDEBYZ4 was down by 1.8% at 128.6 euros/MWh.

The French 2024 contract TRFRBYZ4 was untraded after a previous settlement at 142.5 euros.

LSEG coal market research said ample stocks were suppressing European import demand, and hence weakening prices.

"Lower LNG and gas prices have eroded the competitiveness of coal in the power mix in many major markets," said Toby Hassall, lead analyst.

European Union energy ministers on Tuesday are attempting to defuse a stand-off between France and Germany over the future competitiveness of industrial sectors, a dilemma which has been holding up a deal on power market reforms.

($1 = 0.9477 euros)

(Reporting by Vera Eckert in Frankfurt; editing by Jason Neely)

(( vera.eckert@thomsonreuters.com; +49 30 2201 33654))

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