German 2014 Power Falls to Record as Emission Permits, Coal Drop

Electricity for delivery next year in Germany dropped to a record amid weaker prices for coal and emissions permits and an expected oversupply of generation capacity in the market.

Baseload German 2014 electricity, for supplies delivered around the clock, fell as much as 0.3 percent to a record 45 euros ($58.95) a megawatt-hour, and was at 45.15 euros at 4:55 p.m. Berlin time, according to broker data compiled by Bloomberg. The comparable peakload contract, for delivery from 8 a.m. to 8 p.m., declined 0.9 percent to 56.65 euros, the lowest since February 2010. It later traded at 56.80 euros.

“The market is still oversupplied, that goes for emissions and power, especially in Germany”, Ricardo Klimaschka, a trader at Energie-Union GmbH in Schwerin, Germany, said by phone.

Carbon allowances for delivery in December lost as much as 5.3 percent to 6.22 euros a ton. European coal for delivery next year to Amsterdam, Rotterdam or Antwerp slipped 0.7 percent to $101.85 a ton, its lowest since Nov. 1, according to broker data compiled by Bloomberg.

In 2012, power consumption in Germany, Europe’s biggest energy market, fell 1.4 percent to 595 terawatt-hours, according to preliminary data from AG Energiebilanzen e.V., an association of energy lobbies and the economic research institutes Deutsches Institut fuer Wirtschaftsforschung and Energiewirtschaftliches Institut an der Universitaet zu Koeln.

French Power

In France, power for delivery next week dropped as much as 6.1 percent to 46 euros a megawatt-hour, its first decline in four days, and was later at 47 euros. Above-average-temperatures and higher availability of generation capacity are lowering demand for power.

In Paris, high temperature may rise to 10 degrees Celsius (50 Fahrenheit) on Jan. 7, above the five-year average of 5 degrees, according to CustomWeather Inc. data on Bloomberg. Nuclear generation capacity will increase to 58,963 megawatts as of Jan. 7, from 58,105 megawatts tomorrow, French power grid operator RTE said on its website.

In the Nordic region, electricity prices increased amid lower hydropower reserves. Baseload power for delivery in February rose as much as 4 percent while the contract for delivery in the second quarter climbed as much as 1.5 percent.

The region’s hydropower reserves, which were 1.75 terawatt-hours less than the seasonal average today, may drop further to a deficit of 3.3 terawatt-hours in two weeks, according to Markedskraft AS data on Bloomberg. The region gets more than half of its power supplies by running water through turbines.

The February Nordic contract gained 1.70 euros to settle at 43.95 euros a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, while the second-quarter price rose 30 cents to settle at 36 euros.

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