German 2013 Power at Record Low Deteriorates Generating Margins

German electricity for 2013 delivery fell to a record low, pushing loss margins for gas-fired power plants to their widest in three weeks.

German baseload 2013 electricity, for supplies delivered around the clock, slid as much as 0.4 percent to 46.30 euros ($59.66) a megawatt-hour, according to broker data compiled by Bloomberg. That’s the lowest level for the contract since it began trading in May 2008.

The German clean-spark spread for next year, a measure of gas-fired power plant profitability, widened by as much as 1.4 percent to minus 12.51 euros a megawatt-hour, its lowest level since Oct. 31, according to data compiled by Bloomberg.

Germany may close as much as 14 gigawatts of aging fossil- fueled capacity by 2015 as utilities start paying for permits to emit carbon next year, Mark C. Lewis, an analyst at Deutsche Bank AG, said today. Profits at gas-fed power plants in Germany have been negative since the start of the year, which may influence companies decisions to close plant, he said.

German December power, a European benchmark contract, fell as much as 1.6 percent to 45.75 euros while the day-ahead contract dropped as much as 7 percent to 46.50 euros amid higher-than-expected wind output. Wind generation was at 5,584 megawatts at 1:03 p.m., compared with an earlier forecast for today of about 2,000 megawatts from the website of Meteologica SA, a Madrid-based weather bureau.

To contact the reporter on this story: Marek Strzelecki in Warsaw at

To contact the editor responsible for this story: Lars Paulsson at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.