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WEEKLY – Spot power to jump 14% as wind output dives

(Montel) German spot power prices looked set to jump around 14% on average this week as forecasts showed wind power output would fall by around a third.

Day-ahead prices could average around EUR 74/MWh this week, up from last week’s average of EUR 64.80/MWh, according to Montel’s Energy Quantified (EQ). On Friday, the front-week
contract closed at EUR 67/MWh on the EEX exchange.

Wind generation was expected to average 18.4 GW this week, 9.3 GW lower than last week and 4 GW below normal, EQ data showed.

Solar power production looked set to average 3 GW, 1 GW higher than last week and 1.7 GW below normal.

Meanwhile, demand should average 57 GW this week, down 0.6 GW from last week and 1.3 GW below normal, according to EQ.

Further out on the power curve, the benchmark front-year contract fell EUR 6.80 last week to close at EUR 74.50/MWh in line with lower gas and carbon prices.

The benchmark Dec 24 EUA contract fell EUR 4.70 last week to close at EUR 58.80/t on Friday.