Europe Power-Curve prices rise, track firmer oil, CO2 - Reuters

Thu Sep 29, 2011 12:37pm EDT

* Temperatures to remain above averages until next week

* Spot prices in OTC market fall on good solar output, low demand

PARIS/FRANKFURT, Sept 29 (Reuters) - European electricity curve prices rose on Thursday with firmer oil and carbon prices, which were driven by hopes euro zone leaders will be able to organise an effective response to the region's debt crisis.

German Cal '12 baseload gained 25 cents to 56.85 euros, a one-week high, after its steep losses earlier this week. The French contract mirrored the move, up 10 cents at 55.45 euros.

In macro news, German unemployment fell more than expected in September despite the generally worsening economic atmosphere, proving a surprisingly robust segment while overall euro zone business sentiment dropped sharply.

German Chancellor Angela Merkel won a vote on enhancing the euro zone's bailout fund with support from her own coalition majority without having to rely on the opposition, which reaffirmed her authority.

Spot prices in the over-the-counter market in France and Germany eased, pushed lower by expectations of high solar production for the next few days, combined with lower electricity demand due to high temperatures sweeping the region for this time of year.

Next week, a cooler weather trend will be setting in but this will be accompanied by more wind. Demand will be curbed by a German public holiday on Monday.

Day ahead baseload in Germany was 2.15 euros off at 56.35 euros in OTC trading while the French contract fell by 4.25 euros to 53.00 euros.

Weather forecasts show temperatures will slump from Tuesday, and reach below seasonal averages from Thursday.

Elsewhere, RWE said in a statement it is a founding member of a new European Association for the Storage of Energy (EASE) across Europe as one of the central challenges in the next 5 to 10 years will be the integration of green power onto grids.

The head of energy agency Dena reiterated an earlier Dena statement at a conference in Austria that Germany must move faster to integrate renewables. (Reporting By Muriel Boselli and Vera Eckert; editing by Keiron Henderson)