Germany’s coming year base power leaps on rising carbon and oil prices

FRANKFURT (Reuters) – Base electricity for the coming year in Germany, the benchmark contract for the European wholesale market, gained 6.2% on Monday to trade at 142 euros ($ 156.64) on megawatt hour (MWh) at 08:25 GMT, due to rising carbon and oil prices.

Electricity spot prices in the two main markets of Germany and France were lower than Friday’s forecast on stronger wind volume forecasts, but investors worried about falling temperatures and imports of gas just stable, traders said.

Electricity futures have tripled this year due to a range of factors, including Asia’s economic recovery with politically motivated price hikes in European carbon permits, rising prices of oil and the low local production of renewable energies.

Russian wind supply models and gas deliveries continue to be seen as wild cards in the market.

The Nord Stream 2 gas link between Russia and Germany is undergoing an authorization process which many market players say will take months, too late to relieve the gas markets this winter.

At just under 70% of their fill, European gas stocks are lower than usual after a year of weak imports in which Asian buyers grabbed liquefied natural gas (LNG), according to the reports. data from the industrial group GIE.

At the same time last year, inventory levels were at 89%.

The nuclear sector is also in the spotlight, the French network operator RTE having warned last week that the cold weather of the January-February period could put a strain on the country’s supplies, which export net to its European neighbors.

In Germany, three large nuclear power plants will close at the end of the year as part of a national exit plan.

The German day-ahead base load at 124 euros / MWh was 57% lower than Monday’s delivery and compared to the 400 euros of the contract on October 6.

French Tuesday delivery, at 285 euros, was down 52% from Monday’s delivery and well below its contractual high of 332 euros on November 23.

($ 1 = 0.8874 euros)

(Reporting by Vera Eckert and Forrest Crellin; Editing by Edmund Blair and Devika Syamnath)

Steve R. Hansen