Dec. 27 (Bloomberg) -- German power for 2013 dropped to a record after day-ahead prices during the Christmas holidays fell below zero while above-average temperatures pushed down electricity for next-quarter delivery.
German 2013 baseload power, for supplies delivered around the clock, fell for a fifth day, declining as much as 1.8 percent. Baseload prices for next month dropped as much as 9.5 percent, according to broker data compiled by Bloomberg.
“There is some panic in the market after we saw negative prices of more than minus 200 euros for some hours on Dec. 25,” said Volker Krampe, a trader at Energiehandelsgesellschaft West mbH in Muenster, Germany.
The benchmark German year-ahead contract fell 80 cents to 44 euros ($58.20) a megawatt-hour as of 5:25 p.m. Berlin time. The month-ahead contract declined 4.50 euros to 42.75 euros, the lowest since July 31.
Germany seeks to generate more than a third of its electricity from renewables as the country exits nuclear energy. Utilities including EON SE and RWE AG may prefer to pay users rather than halt fossil fuel-fed plants when turbines and solar cells push power supply above demand.
German day-ahead prices traded at 29 euros a megawatt-hour via brokers after yesterday’s auction price for today of 20.45 euros at the European Energy Exchange AG. Today’s auction for tomorrow resulted in a price of 31.30 euros.
RWE will bring its two 1,050-megawatt Neurath F and G coal-fired plants back online on Dec. 28 and Dec. 29, according to the company’s website. The 599-megawatt coal Neurath E unit will start producing power on Jan. 1.
European Union carbon emissions permits for 2013 delivery declined as much as 1.3 percent to 7.03 euros a metric ton, reversing earlier gains, and traded at 7.09 euros as of 4:45 p.m. London time on the ICE Futures Europe exchange in London.
In France, baseload power to be delivered next week fell as much as 15 percent to 16 euros a megawatt-hour, the lowest price since Bloomberg started compiling data in September 2007. The contract traded at 17.50 euros at 5:25 p.m. Paris time.
Nordic power for next month fell 5.4 percent, the steepest decline since Aug. 29, to 40 euros a megawatt-hour.
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