Dec. 13 (Bloomberg) -- Polish power for next year advanced for a third day as JPMorgan Chase & Co. said the contract would advance from current levels amid recovering demand.
Polish electricity for next year advanced 0.3 percent to 170.10 zloty ($54.36) a megawatt-hour, broker data on Bloomberg showed. The contract fell to 167.20 zloty a megawatt-hour on Dec. 10, its lowest level since at least June 2008.
The country’s power demand may fall by 1 percent this year as the economy slows and grow by 2 to 2.5 percent annually in the following years, Javier Garrido, a JPMorgan analyst in Madrid, said in a research note today.
“Polish demand should be further fueled by the gradual replacement of domestic coal with electricity and in the future gas for heating purposes, driven in our view by rising gross domestic product per capita and growing Silesian coal prices,” the analysts said. The bank expects the contract will average 180 zloty a megawatt-hour next year amid falling coal inventories.
The Polish day-ahead contract declined 12 percent to 189.31 zloty a megawatt-hour as the nation was set to become a net importer during peak afternoon hours tomorrow, getting 373 megawatts of power from neighbors from 5 p.m. to 6 p.m. That compares with net exports of 400 megawatts at the same time today.
Day-ahead electricity on the coupled market of the Czech Republic, Slovakia and Hungary plunged 25 percent, according to the countries’ market operators. The contract settled at 50.75 euros ($66.38) a megawatt-hour in the Czech Republic and at 51.21 euros in Hungary and Slovakia.
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