German Power for March Has First Weekly Gain on Cold Weather
German power for delivery in March had its first weekly gain as weather forecasters lowered their temperature outlooks.
The baseload power contract, for delivery around the clock in Europe’s biggest electricity market, rose as much as 0.6 percent before settling unchanged at 38.85 euros a megawatt- hour, according to broker data compiled by Bloomberg. The contract gained 0.7 percent this week, its first weekly increase since it started trading in October. French baseload power for March advanced 3 percent to 45.75 euros.
Temperatures in Germany will average minus 1.1 degree Celsius (30 Fahrenheit) through March 2, down from an earlier forecast of minus 0.4 degrees, MetraWeather data using the GFS model show. The estimate for France was reduced by 1.2 degree to 0.7 degrees. Lower temperatures boost demand for electric heating.
Power for delivery in 2014, a European benchmark, was unchanged at 42.70 euros a megawatt-hour and had its fourth weekly gain. The contract fell as much as 0.6 percent as European carbon permits for December lost as much as 9.4 percent and coal for delivery next year to Amsterdam, Rotterdam or Antwerp declined as much as 0.4 percent. Power can track emissions, coal and other fuels that impact production costs.
In Germany, available generation capacity will advance to 64,300 megawatt on March 1 compared with 62,700 megawatts today, according to data on the European Energy Exchange AG website. In France, nuclear output will climb to 54,100 megawatt in the week starting March 4 from 52,530 megawatts today, data on Reseau de Transport d’Electricite’s website show.
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