November 14, 2017 / 7:15 AM / 5 days ago

RWE details forward power hedges of German plants

FRANKFURT, Nov 14 (Reuters) - RWE has sold the bulk of its 2018, 2019 and 2020 power generation from nuclear and brown coal-fired plants in Germany, the utility’s earnings report for the first nine months of 2017 showed on Tuesday.

* Over 90 pct of production in both 2018 and 2019 was sold at 27 euros a megawatt hour (MWh), it said in slides prepared for a call with analysts.

* More than 70 percent of 2020 output was sold ahead at 30 euros.

* By comparison, wholesale market prices for German 2018 baseload power closed at 36.85 euros on Monday, according to Thomson Reuters data. The 2019 and 2020 contracts closed at 35.35 and 37.10 euros respectively.

* RWE rivals Uniper and E.ON last week also detailed selected hedging ratios and prices, which energy traders track to assess the size of future volumes tied up with counterparties and the value of forward production.

* Electricity output from RWE last year fetched 35 euros/MWh, and the output of the current year 2017 is 90 percent sold at 31 euros, RWE also said. The volume of the 2017 position amounts to 100 terawatt hours (TWh).

* European wholesale power prices have been in recovery since fourth quarter 2016, having been in an almost continuous downtrend between 2011 and 2016.

* This year, there is more tightness in the French nuclear sector while the cost of input fuels for generators has risen and some old thermal power plants have gone off the grid. (Reporting by Vera Eckert; Editing by Georgina Prodhan)

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