European 2014 Power Declines as Coal, Emissions Contracts Fall
European power for 2014 delivery in Germany and France, the bloc’s biggest markets, dropped as the cost of carbon emissions and coal fell.
Baseload German 2014 electricity, for supplies delivered around the clock, declined for a second day, losing as much as 0.8 percent, while the French equivalent fell 0.8 percent, according to broker data compiled by Bloomberg.
The benchmark German contract dropped as much as 35 cents to 42.30 euros ($56.56) a megawatt-hour and was trading at 42.40 euros at 4:45 p.m. in Berlin. In France, the year-ahead contract slid 35 cents to 45.20 euros.
European coal for delivery in 2014 fell 0.4 percent to $98.50 a ton in the fifth day of declines, while European emissions allowances for December dropped as much as 3.2 percent to 5.08 euros a metric ton on the ICE Futures Europe exchange in London. Power can track emissions and coal, which affect production costs.
March power in Germany lost as much as 1 percent to 38.45 euros while the equivalent French contract slid 1.1 percent to 43.50 euros a megawatt-hour, broker data show.
Temperatures in Germany may fall to minus 1.5 degrees Celsius (29 Fahrenheit) at 6 a.m. tomorrow compared with a previous forecast of minus 1.4 degrees, according to a GFS model supplied by MetraWeather to Bloomberg. In France, minimum temperatures will reach 1.3 degrees at 6 a.m., in line with earlier predictions.
Wind output in Germany is predicted at less than 1 gigawatt tomorrow, Meteologica SA, a Madrid-based weather forecaster, said on its website. That compares with an average level of 4.9 gigawatts, according to data from EEX on Bloomberg.
Demand in France, Europe’s second-biggest power market, may reach 73,000 megawatts tomorrow, according to a forecast on the website of Reseau de Transport d’Electricite, the network operator. That compares with 78,535 megawatts today.
RWE AG delayed the start of its 608-megawatt Gersteinwerk K2 coal-fed power plant to Feb. 18 after a boiler fault yesterday, the company said on its website.
To contact the reporter on this story: Rachel Morison in London at firstname.lastname@example.org
To contact the editor responsible for this story: Lars Paulsson at email@example.com
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.