Next-Day Power Prices Advance as Lower Wind Capacity Forecast in Germany

German power for next-day delivery rose for an second day as forecasts showed lower wind capacity in Europe’s biggest market.

Baseload day-ahead power gained 4.7 percent to 43.99 euros ($55.85) a megawatt-hour in an auction on the EPEX Spot SE exchange in Paris. The corresponding contract in the over-the- counter market advanced 7 percent to 46 euros, according to broker prices. Baseload is delivered around the clock.

Output from wind turbines, a less-predictable source of energy than nuclear, coal or gas-fired generation, will fall tomorrow to the 4,000-megawatt average for this time of year from more than 9,000 megawatts today, Markedskraft Deutschland GmbH said in an e-mailed report. Wind last year produced 6.8 percent of Germany’s power.

“Our price expectations for the next days are mostly affected by the changed wind forecast,” the company said in the report. Levels will be at average or below through at least Sept. 18, Markedskraft said.

Capacity will be cut in the German market from Sept. 11 when E.ON AG, Germany’s biggest utility, plans to halt its 878- megawatt Isar-1 nuclear reactor for about five weeks. Germany has 17 nuclear reactors.

Power for next-year delivery, a European benchmark, gained 5 cents to 50.65 a megawatt-hour, according to broker prices on Bloomberg. It has traded between 45.05 euros and 55.50 euros this year.

The country, Europe’s biggest economy, also gets power from hard coal, lignite, natural gas and solar stations.

Bloomberg tracks prices from brokers including GFI Group Inc., ICAP Plc and Spectron Group Ltd.

To contact the reporter on this story: Lars Paulsson in London at lpaulsson@bloomberg.net

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