Monday prices bid higher, wind supply declines, temperatures fall

European wholesale power prices for Monday were untraded, with price indications exceeding closing prices for Friday delivery, as the market responded to forecasts for lower wind supply and rising demand in France.

German baseload power (TRDEBD3) for delivery on Monday was in a bid-ask range of 110-132.5 euros ($119.63-144.09) a megawatt-hour (MWh) at 0835 GMT, exceeding Friday's delivery price of 94.3 euros by 17-41%.

The equivalent French price (TRFRBD3) saw a bid of 103.5 euros, compared with the Friday delivery price of 80 euros.

Refinitiv Eikon data forecast a 10.8 gigawatt (GW) lower wind power production level in main producer country Germany by Monday of 12.1 GW, compared with the Friday figure, and a 9.5 GW lower result in France on Monday, when the total there was due to stand at 5.6 GW.

French nuclear availability remained at 63% of total installed capacity.

On the demand side, German consumption is set to come in at 56.5 GW on Monday, 200 MW below Friday's level, and usage in France was due to rise to 50.5 GW, 2.8 GW above the number for Friday.

Power demand next week will be weak overall because of the four-day Easter holiday period starting on April 7.

But French prices firmed nevertheless as they tend to respond directly to cool temperatures, owing to the country's electric heating infrastructure.

Along the forwards curve, German baseload for 2024 (TRDEBYZ4), the European forwards benchmark, gained 1.2% at 146 euros/MWh.

The equivalent French contract (TRFRBYZ4) was untraded after closing at 207 euros/MWh on Thursday.

European CO2 allowances for December 2023 expiry (CFI2Zc1) edged up by 0.3% at 91.21 euros a tonne.

Mercedes-Benz has signed a power purchase agreement (PPA) with Spain's Iberdrola for 140 megawatts (MW) of energy from a Baltic Sea wind park, combining the automaker's wish for predictable costs and guaranteed financing for the producer.

($1 = 0.9195 euros)