German 2014 Electricity Slides to Record as Emission Prices Drop

German power for 2014 fell to a record as European emission permits dropped for a fourth day.

German electricity for 2014, a European benchmark, lost as much as 0.4 percent, according to broker data compiled by Bloomberg, as European emission allowances for December dropped 3.5 percent on the ICE Futures Europe exchange in London.

Baseload power, for delivery around the clock, declined 15 cents to 40.25 euros ($54.80) a megawatt-hour before trading unchanged at 10:02 a.m. Berlin time. European emission permits for delivery in December slid as much as 12 cents to 3.30 euros a metric ton. Power can track emission prices that influence electricity production costs.

“We continue to believe that absent regulatory intervention, the improved liquidity in the carbon market since Jan. 1 will quickly, within a few months, drive the carbon price towards potentially below 1 euro a ton”, Per Lekander, a Paris- based analyst at UBS AG (UBSN), said in an e-mailed note.

German baseload power for delivery in March dropped as much as 1.3 percent to 38.50 euros a megawatt-hour, the lowest price since Bloomberg started compiling the data in October.

Available generation capacity in Germany is set to rise to 64,105 megawatts on Feb. 4 from 62,000 megawatts today, according to data on the European Energy Exchange AG website. In France, nuclear output is set to climb to 58,000 megawatts from 57,587 megawatts tomorrow, data from Reseau de Transport d’Electricite show. EDF started its 910-megawatt Blayais-4 reactor after an unplanned halt on Jan. 30, according to RTE.

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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