German Next-Year Power Falls to Record on Mild Weather
German power for 2013 fell to a record as contracts for the next three months declined on forecasts for milder weather.
German power for next year lost as much as 0.7 percent, according to broker data compiled by Bloomberg. Low temperatures in Frankfurt will be above the 10-year average for the rest of the year, according to CustomWeather Inc. data on Bloomberg.
The year-ahead contract, a European benchmark, fell 0.4 percent to 45.33 euros ($59.66) a megawatt-hour at 4:58 p.m. Berlin time. Power for January dropped for an eighth day, its longest losing streak since September 2011, and was down 1.2 percent at 47.70 euros.
“Traders aren’t afraid that this winter is going to be a cold one, which puts pressure on power prices at the short end of the curve,” Danny Graefe, a power trader at AVU Energie AG, said today by phone from Gevelsberg, Germany. He buys and sells energy for local utilities in the Rhine-Rhur area.
The temperature in Frankfurt will rise as high as 8 degrees Celsius (46 Fahrenheit) on Dec. 25. Wind speeds will increase to 28 kilometers (17 miles) per hour on Dec. 26, up from 15 kph today.
German day-ahead power rose to 55.24 euros a megawatt-hour in an auction on the European Energy Exchange, compared with 53.28 euros for delivery today.
“Wind will pick up in the next week though and combined with low demand and above-average temperatures during the Christmas holidays we may see negative day-ahead power prices then,” Thomas Randel, a power trader at Karlsruhe-based utility EnBW Energie Baden-Wuerttemberg AG (EBK), said by phone.
Carbon permits for December declined 1.4 percent to 6.48 a metric ton on the ICE Futures Europe exchange. Lower carbon costs will damp power prices further and the 2013 contract may lose another 50 cents, Randel said.
German utility RWE AG (RWE) started block C of its 1,288-megawatt nuclear power plant Gundremmingen at about 5:40 p.m. German time, according to power plant data on Bloomberg. The plant was halted Dec. 10 for technical reasons.
To contact the reporter on this story: Julia Mengewein in Frankfurt at email@example.com
To contact the editor responsible for this story: Lars Paulsson at firstname.lastname@example.org