EUROPE POWER-European forward power prices edge down on warm sunny weather

European year-ahead benchmarks edged down on Wednesday, as Europe enters a period of high renewable energy production and lower demand, while traders consider supply risks linked to the Iran war are priced in for now.

BNP Paribas analysts said in a note European electricity prices in the second and third quarters should be moderated by high levels of renewable energy generation, although they said hot weather could pose risks to French nuclear cooling.

• The German year-ahead baseload TRDEBYc1 fell 0.2% to 91.58 euros ($107.14) per megawatt-hour at 0959 GMT.

• The equivalent French contract was not traded according to LSEG data.

• Although the Strait of Hormuz is effectively shut, severely disrupting energy supplies, the market is not pricing in further risk premium, analysts at Mind Energy noted on Wednesday.

• Aaron Alber, analyst at Raiffeisen, said there was enough natural gas supply, which, together with warmer temperatures and growing renewable supply, should lead to less price pressure in the days ahead.

• Efforts to end the Iran conflict are at an impasse. U.S. President Donald Trump on Tuesday said he was unhappy with the latest proposal from Tehran.

• German and French spot contracts rose as wind power generation fell.

• The German day-ahead contract TRDEBD1 was up 3.9% to 67 euros/MWh.

• The equivalent French price TRFRBD1 was up 5.25 euros at 8.25 euros/MWh.

• Wind power generation is expected to drop by 2.1 gigawatts in Germany to 13.2 GW, and by 1.9 gigawatts in France to 8.2 GW, the data showed.

• Consumption was also expected to fall, slipping by 1.1 gigawatts in Germany and 3.4 gigawatts in France.

• French nuclear power availability remained at 82% of total capacity. POWER/FR

($1 = 0.8548 euros)