German Next-Year Power Rebounds From Two-Year Low as Coal Rises

Power for next year in Europe’s biggest economy rebounded from a two-year low as European coal gained. Profits from gas-fed power plants declined.

Baseload 2013 German power, for supplies delivered around the clock, rose 0.4 percent as coal for delivery in Amsterdam-Rotterdam-Antwerp next year advanced 1 percent, according to broker data compiled by Bloomberg.

The 2013 power contract, a European benchmark, rose 20 cents to 47.20 euros ($61.35) a megawatt-hour, broker data show. The contract fell as low as 46.90 euros yesterday, the lowest price for a year-ahead contract since November 2010. The equivalent coal contract erased earlier losses, adding 95 cents to $94.30.

Power can track fuel and emissions prices, which affect the cost of production at plants which burn the fossil fuel.

The German 2013 clean-spark spread, a measure of the profit utilities get from selling electricity after accounting for the cost of gas and emissions permits, declined as much as 2.1 percent to minus 10.94 euros a megawatt-hour, the lowest since 2009, according to data compiled by Bloomberg.

Day-ahead power added 8 percent to 45.10 euros while the month-ahead contract halted six days of losses, rising 1.7 percent to 48.10 euros, broker data show.

Temperatures in Frankfurt are forecast at 15 degrees Celsius (59 Fahrenheit) tomorrow, in line with a five-year average of 15 degrees, according to CustomWeather Inc. data on Bloomberg. High temperatures will rise to 20 degrees Celsius on Oct. 19 and to 22 degrees Celsius on Oct. 20.

RWE AG had an unplanned halt at its lignite-fed Weisweiler-H power plant, the company said on its website. The 590-megawatt unit is scheduled to start tomorrow.

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