NORDIC POWER-Forward prices slip on lower European rates, technical correction

March 18 (Reuters) - Nordic forward power prices inched lower on Wednesday, pressured by a technical correction and weaker rates in continental energy markets.

Nordic front-quarter baseload power contract 0#NSBLQ: fell 1.65 euros to 54.5 euros per megawatt hour (MWh) at 1058 GMT.

Nordic front-year power contract 0#NSBLY: slipped 0.45 euros to 44.35 euros per MWh.

"I think there was an unreasonable rise in prices on Monday. We just settled back to more comfortable range," said Axel Weyler, originator at Entelios Trading AB.

Power prices for Germany's year-ahead contract TRDEBYc1, Europe's benchmark, edged 1.4 euros, or 1.5%, lower to 89.85 euros per MWh.

In the European carbon market CFI2Zc1, the benchmark contract fell 0.54 euros, or 0.8%, to 66.11 euros a ton.

To ease the impact of surging energy prices caused by the U.S.-Israeli war against Iran, European Commission President von der Leyen said on Monday that the EU will make more carbon emissions permits available and allow more state aid to industries, while stopping short of major market interventions such as capping gas prices.

With Europe shifting generation from gas back to coal, the resulting weakness in carbon prices is adding further downward pressure on Nordic power, Weylar added.

Elsewhere, Nordic water reserves PCAEC00 fell to 26.37 terawatt hours (TWh) below normal from 25.81 TWh below normal on Tuesday.

"Moderate low-pressure influence will dominate through the next 10 days as the high-pressure system over the continent will move west and will allow Atlantic lows to move in. Temperatures will slowly decrease to near normal values next week," said LSEG meteorologist Georg Mueller.

The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, was down 45.05 euros, or 59.3%, to 30.88 euros per MWh.