EUROPE POWER-Curve extends slide on carbon emissions selloff

  • Oct 11, 2018
  • Reuters - Africa

PARIS, Oct 11 (Reuters) - European forward power contracts extended losses on Thursday on the back of a selloff in carbon emissions permits and broadly weaker energy prices.

* The German baseload Cal’19, the European benchmark, fell 2.5 percent to 50.65 euros ($58.47) a megawatt hour (MWh), its lowest level since mid-September.

* Germany’s 2020 delivery position was down 2.8 percent at 48.60 euros/MWh, while the 2012 contract slipped 4.8 percent to 46.50 euros/MWh.

* French baseload power for 2019 delivery fell 3.4 percent to 55.20 euros/MWh.

* European December 2018 expiry CO2 allowances, which power generators must hold to cover their output, tumbled 4.6 percent to 18.56 euros a tonne.

* BayernLB bank said in a research note that mild weather had battered CO2 prices despite political messages this week that more efforts against climate change were necessary, and the EU agreed lower emissions caps for new passenger cars up to 2030.

* “The warm weather was a more powerful impact than big words from policymakers, as it cuts gas and coal consumption,” it said.

* European delivery API2 coal for 2019, another big generation cost, was untraded with a bid/ask price of $93.25/$93.75 a tonne compared with its close at $95.20.

* Price in the day-ahead spot market diverged on Thursday as an expected drop in demand weighed on the French contract, while the German position was lifted by a forecast fall in wind power generation.

* German baseload power for Friday delivery gained 6.4 percent to 58 euros a megawatt hour (MWh).

* The equivalent French price dipped 8 percent to 61 euros/MWh.

* Electricity generation from German wind turbines will drop by 4.5 gigawatts (GW) to 7.4 GW on Friday, according to Refinitiv Eikon data.

* French electricity demand will decrease by over 1 GW to 47.6 GW on milder weather, the data showed.

* A forecast by French grid operator RTE showed that temperatures were expected to remain above seasonal norms going into next week, which will keep demand subdued.

* French nuclear supply dropped over 2 percentage points to 70.76 percent of capacity.

* In eastern Europe, the Czech year-ahead contract fell over 4 percent to 53.20 euros/MWh. The day-ahead baseload contract was down 0.4 percent at 58.25 euros/MWh. ($1 = 0.8663 euros) (Reporting by Bate Felix, Additional Reporting by Vera Eckert in Frankfurt, editing by David Evans)

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