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Europe Power-Curve at four-week lows, watches CO2
July 25, 2012 / 8:14 AM / 5 years ago

Europe Power-Curve at four-week lows, watches CO2

 * Curve hovers at four week lows OTC and on the EEX
 * Spot prices climb again on tight supply, rising demand
 FRANKFURT, July 25 (Reuters) - Europe's power curve traded
at four-week lows early on Wednesday ahead of the publication of
a European Commission plan to cut supply in the carbon emissions
market to boost prices.
 "Fuels are bearish which is dragging down power but carbon
prices could jump briefly if the plan convincingly cuts CO2
permit supplies, " one trader said.
 Apart from fuels prices, Europe's power industry has to
factor in the cost of mandatory CO2 avoidance efforts into
prices, where the price of emissions allowances sets the
benchmark.
 German Cal '13 baseload was unchanged at 47.75 euros ($58) a
megawatt hour in the OTC market, the lowest since late
June, having touched an intraday low of 47.50 euros. 
 The equivalent French OTC contract was last 5 cents down on
the day at 49.65 euros.
 On the EEX bourse, the German Cal '13 baseload contract was
at 47.67 euros, the lowest since 47.50 euros on June 21. 
 EU carbon for Dec 12 delivery was 0.3 percent down at 7.18
euros a tonne. The EU Commission will publish details
later on Wednesday on its plan to bolster the carbon Emissions
Trading Scheme (ETS) by reducing a massive burden of surplus
allowances. 
 Brent slipped to $102 a barrel as worries about oil demand
from the troubled euro zone offset any gains to prices sparked
by concerns about oil supply from the Middle East. 
 The euro zone's private sector shrank for a sixth month in
July as manufacturing output nosedived, notably in Germany and
France, the bloc's core markets.
 Prompt power prices rose for a third day due to low wind
power production and tight French nuclear power availability.
 Power for Thursday gained 1 euro in Germany to 48.75 euros
BD1DE-D and 90 cents in France to 49.75 euros, compared with
day-ahead levels paid the previous day.
 Midday peak-time solar capacity levels were expected to fall
to near 10 GW by Saturday from nearly 20 GW currently utilised
during midday peaks, while wind levels will remain at negligible
levels up to the weekend, according to weather data.
 Temperatures in Germany were at just under 30 degrees,
having risen 3 degrees this week on average, while France saw
level of over 30 degrees in the south and could spike at 35
degrees in some locations, boosting power demand for air
conditioning.
 German utility postponed an investment decision on a 3
billion euro offshore wind farm in the North Sea to early next
year because the liability rules for such projects are still
unclear, according to a media report. 
($1 = 0.8275 euros)

 (Reporting by Vera Eckert; Editing by Alison Birrane)
 
 

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