18 Jan Power
Cold fronts in late December and early January supported pan-European power prices from dropping further. Base load prices in France hit €54/MWh for Feb, compared to €62-63/MWh on the last issue. Nuclear output is consistently above 50 GW, reducing pressure on markets. UK base load prices retraced once the UK Forties oil pipeline came back online. It provides the UK with 40% of its oil and gas. Base load prices are $52-53/MWh for prompt contracts down from €55/MWh on the last issue. German base load prices are assessed at €55-56/MWh, up from €45/MWh on the last issue. Wind availability has been erratic and power demand made a strong start to the year. Italian base load prices retraced after the Austrian gas explosion which disrupted supplies. They were €90/MWh, but have fallen to €59/MWh.
Outlook – Price risk is downside. No supply interruptions at the main hubs; renewable availability is better.