EUROPE POWER-Surplus wind creates bearish environment, higher French spot an outlier

FRANKFURT, Oct 15 (Reuters) – European wholesale power prices on Wednesday came under bearish pressure from more wind power supply in Germany, but the French day-ahead position gained on decreasing solar production, while remaining at a discount. "Wind supply increasing steadily until hour 14, after which it stabilise(s) and show(s) a slight decline," said LSEG analyst Xiulan He in a day-ahead forecast for Germany, adding that export from Germany was predicted in the hours 10-17. The German baseload price for Thursday was down 27.3% at 103.8 euros ($120.80) per megawatt hour (MWh) at 0755 GMT while the equivalent French position stood 2.0% higher at 88.3 euros/MWh. Adding to the price-negative factors were stable temperatures, broadly steady demand, and higher nuclear availability in France. The prospect of French autumn holidays over the coming fortnight weighed down week-ahead contracts . Supply-wise, German wind power output was expected to rise to 17.1 gigawatts (GW) on Thursday, up from 6.2 GW on Wednesday. French nuclear availability was two percentage points up overnight at 68% of total capacity. Power demand was broadly unchanged in the two-day period, standing at 57.8 GW and 47.6 GW for Germany and France respectively. German year-ahead baseload was untraded after a close at 86.3 euros/MWh and so was France's year-ahead contract , which had closed at 56.5 euros. In the European carbon market, the benchmark contract ticked up 0.5% to 77.27 euros a metric ton. European Union leaders plan to agree for the bloc to set a new climate change target for 2040, but demand the EU does more to support industries like steel and carmaking to meet it, draft conclusions for an EU summit next week showed. Swiss utility Axpo, in a monthly energy report, said feed-in of liquefied natural gas (LNG) into Europe's pipeline grid was on the rise, coal stocks were steady and the Rhine river route for shipping coal cargoes free of disruption. ($1 = 0.8593 euros) (Reporting by Vera Eckert, editing by Ronojoy Mazumdar)

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