European March Power Drops Amid Forecasts of Rising Temperatures
European electricity for March delivery dropped amid forecasts that temperatures will increase this month.
Baseload German March electricity, for supplies delivered around the clock, fell as much as 2.1 percent while its French equivalent declined 1.8 percent, according to broker data compiled by Bloomberg.
German power for March dropped as much as 80 cents to 38.10 euros a megawatt-hour, its lowest since the contract started trading Oct. 19. It was 38.40 euros a megawatt-hour as of 5:38 p.m. in Berlin.
Minimum temperatures in Berlin will rise to -1 degrees Celsius (30 Fahrenheit) on average by Feb. 18 from -5 degrees on Feb. 11, according to the WeatherOnline website.
“With rising temperatures, German power for March delivery could fall another 1.5 euros a megawatt-hour, especially if carbon and coal drop again,” Thomas Randel, a power trader at EnBW Energie Baden-Wuerttemberg AG, Germany’s third-biggest utility, said by phone from Karlsruhe.
German baseload power for 2014, a European benchmark, was unchanged at 41.65 euros.
Planned maintenance of the German nuclear power plant Philippsburg 2 will last one day longer this year, EnBW said on its website today. Maintenance of the 1,458-megawatt unit will now take place from May 4 to June 9. It was previously due to end June 8.
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