European Next-Week Power Falls to Three-Year Low on Warm Weather
European power for next week declined to the lowest since 2009 as warmer-than-average weather was forecast during the holidays.
Baseload week-ahead power in Germany, for supplies delivered around the clock, slid as much as 8.3 percent while the French peakload contract fell 29 percent. Mild weather can cut demand for heating.
German power for the last week of the year lost 2.55 euros to 28.25 euros ($37.35) a megawatt-hour, the lowest since Dec. 23, 2009, according to broker data compiled by Bloomberg. Peakload French power, delivered from 8 a.m. to 8 p.m., dropped 13 euros to 32.50 euros, the least since July 1, 2009.
The minimum temperature in Frankfurt will be 5 degrees Celsius (41 Fahrenheit) on Dec. 25 versus a five-year average of minus 4 degrees, CustomWeather Inc. data on Bloomberg show. The maximum temperature in Paris is predicted to rise to 6 degrees Celsius on that date compared with an average for the time of year of 1 degree.
Demand in France, Europe’s second-biggest power market, may reach 56,700 megawatts on Dec. 25, according to a forecast on the website of Reseau de Transport d’Electricite, the network operator. That compares with 73,422 megawatts today.
Available generating capacity in Germany is forecast to fall to 66,966 megawatts on Dec. 26 from 68,802 megawatts today, according to data from European Energy Exchange AG.
German power for 2013 was little changed, adding 7 cents to 45.40 euros a megawatt-hour, broker data show. Electricity for January declined 0.2 percent to 47.60 euros.
The German 2013 clean-dark spread, a measure of the profit utilities get from selling electricity after accounting for the cost of coal and emissions permits, fell 1.1 percent to 9.92 euros a megawatt-hour, according to data compiled by Bloomberg.
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