German Power for March Declines as Warmer Weather Is Forecast
Electricity for delivery in March in Germany, Europe’s biggest power market, fell the most in almost a month as forecasts showed warmer-than-normal weather.
German baseload power for March, for delivery around the clock, dropped as much as 2.4 percent, according to broker data compiled by Bloomberg. That’s the biggest decline since Jan. 21. The high temperature in Frankfurt may rise to 13 degrees Celsius (55 Fahrenheit) on March 3 from 2 degrees today, compared with a 10-year average of 6 degrees, according to CustomWeather Inc. data on Bloomberg.
The March contract slid as much as 95 cents to 38.35 euros ($51.25) a megawatt-hour and traded at 38.50 euros at 4:50 p.m. Berlin time, broker data complied by Bloomberg show. Its French equivalent traded at 44.40 euros after losing as much as 2.5 percent to 44.35 euros a megawatt-hour.
German power for delivery in 2014, a European benchmark, dropped as much as 1.5 percent to 41.85 euros a megawatt-hour, its lowest price since Feb. 8, broker data on Bloomberg show.
EU carbon permits for December slid as much as 20 percent to 4.09 euros a metric ton on London’s ICE Futures Europe Exchange after the European Parliament’s environment committee postponed for about a week a decision on whether to authorize its chairman to start negotiations with national governments on a proposal to tackle a glut of carbon permits. The contract traded at 4.67 euros at 3:35 p.m. London time. Power can track carbon and other fuels that impact production costs.
In Germany, RWE AG halted its 636-megawatt Niederaussem G lignite plant on Feb. 17 after a boiler fault. The unit is scheduled to resume output on Feb. 20, according to the company’s transparency website.
The company also halted its 590-megawatt lignite-fed Weisweiler H plant today, after the unit had restarted earlier following a four-day halt. Weisweiler H will start again at 8 p.m. Berlin time, RWE said on its website.
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