Spot prices jump on lower wind and nuclear generation

European prompt power prices rose on Monday, buoyed by sharply lower wind and nuclear power supply in Germany and France respectively.

Refinitiv analysts said that day-ahead wind power output predictions were for the lowest supply in two weeks while demand was rising, adding that thermal power supply was firming up.

German Tuesday delivery baseload power (TRDEBD1) was 362 euros ($379.12) per megawatt hour (MWh) at 1030 GMT, up 29.7% from the price paid for Monday delivery.

The equivalent French contract (TRFRBD1), at 367 euros/MWh, was up 30.6%.

Wind power supply in Germany is forecast at 5.2 gigawatts (GW) on Tuesday, down more than two thirds from the 16.5 GW expected on Monday, Eikon data showed.

Latest French nuclear availability dropped by five percentage points from the Friday level to stand at 53% of available capacity.

Meanwhile, power demand in Germany is projected to rise by 2 GW day on day to 63.4 GW and in France by 2.3 GW to 59.3 GW, with temperatures forecast to fall gradually this week.

Along the curve, German baseload power for 2023 delivery (TRDEBYZ3) fell 2.3% to 337 euros/MWh, tracking weaker oil and carbon. The equivalent French position (TRFRBYZ3) lost 4% to 413 euros.

European CO2 allowances for December 2022 expiry (CFI2Zc1) shed 1.7% to 77.56 euros a tonne.

Hard coal prices for import into Europe have picked up from low levels early this month, with the latest trade last week of $237 a tonne revisiting levels last seen a month ago.

Germany's cabinet approved planned gas and electricity price brakes in an expedited process last Friday, drawing criticism from its political opposition over the weekend. The opposition could seek to block the legislation in the upper house of parliament, where it holds a majority.

Berlin also plans to impose a levy on electricity companies' windfall profits from Dec. 1.

($1 = 0.9548 euros)