Bloomberg News

European 2014 Power Drops to Record as Carbon Allowances Slip

January 10, 2013

German and French power for 2014 declined to records as European Union emissions permits fell to a five-week low.

German 2014 power, a European benchmark, lost as much as 0.9 percent while its French counterpart slid 0.5 percent. Carbon allowances for December tumbled as much as 3.4 percent.

German baseload power, for supplies delivered around the clock, declined as much as 40 cents to 44.35 euros ($58.58) a megawatt-hour and traded at 44.40 at 5:25 p.m. Berlin time, according to broker data compiled by Bloomberg. In France, baseload power for 2014 fell 25 cents to 47 euros.

EU carbon emissions for December slid as much as 21 cents to 6 euros a metric ton on the ICE Futures Europe exchange in London, the lowest price since Dec. 5. The contract traded at 6.10 euros a ton at 4:25 p.m. London time. Power can track fuel and emissions prices, which affect the cost of production at plants that burn fossil fuels.

The German 2014 clean spark-spread, a measure of profits of gas-fed power plants, lost as much as 2.3 percent to a record of minus 14.37 euros a megawatt-hour.

Power consumption in Germany dropped 1.4 percent to 552.3 terawatt-hours in 2012, the German energy lobby BDEW said today in an e-mailed statement.

“I don’t think that colder weather will help lift prices next week if demand is set to stay weak”, said Min-Soo Park, a power trader at MVV Trading GmbH, said by phone from Mannheim, Germany. “The contract has still room to fall to 44 euros, especially if this winter turns out to be mild.”

Day-Ahead Power

German day-ahead power climbed as less wind and below- average temperatures were forecast for tomorrow. Wind generation will drop to 1 gigawatt from as much as 8 gigawatts today, Meteologica SA, a Madrid-based weather forecaster, said on its website. Baseload power for delivery tomorrow in Germany rose as much as 3 percent to 52.25 euros a megawatt-hour. The low temperature in Frankfurt is forecast to decline to minus 3 degrees Celsius (27 Fahrenheit) tomorrow, while today’s low temperature in Frankfurt is 4 degrees Celsius, according to CustomWeather Inc. data on Bloomberg.

The country’s generation availability is forecast to advance to 63,200 megawatts from 62,300 megawatts today, according to data on European Energy Exchange AG. EON will halt power production at its 676-megawatt Scholven-F coal-fired plant from tomorrow until Jan. 13, the company said on its website for real-time production data.

To contact the reporter on this story: Julia Mengewein in Frankfurt at jmengewein@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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