European Next-Week Power Gains as Cold Weather May Boost DemandRachel Morison
Power for next-week delivery in Germany and France, Europe’s biggest markets, rose as weather forecasters lowered temperature predictions.
French electricity advanced for a third day, gaining as much as 13 percent, while the German baseload next-week contract increased as much as 4.7 percent.
French temperatures through March 11 will average 7.4 degrees Celsius (45 Fahrenheit), compared with a seasonal norm 9.2 degrees, based on a GFS model supplied by MetraWeather at 4:39 p.m. Paris time. In Germany, average temperatures will be 1.6 degrees through March 11.
French week-ahead electricity climbed as much as 7 euros to 63 euros ($82.18) a megawatt-hour, the highest since Jan. 17, according to broker data compiled by Bloomberg. The contract traded at 61.20 euros as of 5:35 p.m. Paris time. German power advanced for a third day, rising as much as 2.05 euros to 46 euros a megawatt-hour.
French day-ahead electricity lost 5.7 percent to 54 euros a megawatt-hour in broker trading and settled at 55.42 on EPEX Spot SE. The German next-day contract dropped 1.1 percent to 44.75 euros a megawatt-hour. The price settled at 49 euros in a daily auction on EPEX Spot.
German wind power output will peak at 2,820 megawatts at 11:30 p.m. tomorrow, compared with today’s maximum of 5,897 megawatts at 12 a.m., according to Bloomberg’s German wind power model. Average wind output will be 1,194 megawatts tomorrow.
RWE AG delayed the start of its 604-megawatt lignite-fed Neurath-E power plant to March 9 after an unplanned halt today, the company said on its website.
Power futures traded on European Energy Exchange AG climbed to 112.4 terawatt-hours in February from 93.94 terawatt-hours a year earlier, the exchange said in an e-mailed statement. There were 41.5 terawatt-hours of cleared over-the-counter transactions.
German year-ahead power, a European benchmark, lost 0.6 percent to 41.45 euros a megawatt-hour, broker data show.