Feb. 12 (Bloomberg) -- Power contracts for 2014 delivery in Germany and France rose to their highest level in three weeks as European Union emissions permits advanced.
Baseload German year-ahead electricity, for supplies delivered around the clock, advanced as much as 1 percent while the French contract added 0.8 percent. Emissions climbed as much as 5.4 percent. Power can track emissions, which affect production costs.
German power, a benchmark contract in Europe, climbed as much as 40 cents to 42.60 euros ($57.01) a megawatt-hour, the highest price since Jan. 22, according to broker data compiled by Bloomberg. The contract traded at 42.55 euros as of 4:40 p.m. Berlin time. French power advanced 35 cents to 45.50 euros, also the most since Jan. 22, broker data show.
EU carbon permits for December rose as high as 4.72 euros a metric ton on the ICE Futures Europe exchange in London.
German next-day electricity, for supplies delivered around the clock, gained as much as 4 euros, or 8.2 percent, to 52.50 euros a megawatt-hour, broker data show. The contract settled at 52.68 euros in a daily auction on EPEX Spot SE. French day-ahead power climbed as much as 5.25 euros, or 9.3 percent, to 61.75 euros in broker trading and settled at 58.42 on EPEX Spot.
Temperatures in Frankfurt are forecast to fall to minus 8.5 degrees Celsius (17 Fahrenheit) tomorrow versus a 10-year seasonal average of zero degrees, according to CustomWeather Inc. data on Bloomberg. In Paris, minimum temperatures will reach minus 5.3 degrees, compared with an average of 2 degrees.
Wind output in Germany is predicted at about 6 gigawatts tomorrow, Meteologica SA, a Madrid-based weather forecaster, said on its website. That compares with an average level of 4.9 gigawatts, according to data from Leipzig-based European Energy Exchange AG on Bloomberg.
Demand in France, Europe’s second-biggest power market, may reach 86,700 megawatts tomorrow, according to a forecast on the website of Reseau de Transport d’Electricite, the network operator. That compares with 82,421 megawatts today.
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