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Forward curve sets contract highs over gas questions
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PARIS (Reuters) -European forward curve power prices reached contract highs on Wednesday as the German labour union Verdi called for Berlin to step in quickly to rescue utility Uniper, and Germany said there are no plans to pass on higher energy costs to consumers.
PARIS (Reuters) -European forward curve power prices reached contract highs on Wednesday as the German labour union Verdi called for Berlin to step in quickly to rescue utility Uniper, and Germany said there are no plans to pass on higher energy costs to consumers.
In France, the government is aiming for a full nationalisation of debt-laden utility EDF, Prime Minister Elizabeth Borne said.
Benchmark German baseload power for 2023 delivery gained 1.7% to 327 euros per megawatt hour (MWh) by 1351 GMT, after reaching a contract high of 330 euros earlier.
The French 2022 fourth-quarter contract and the August 2022 contract reached contract highs at 815 euros and 402 euros, respectively.
The French front-year contract was untraded after closing at a contract high of 444.13 euros/MWh Tuesday.
European CO2 allowances for December 2022 expiry rose 1.4% to 84.40 euros a tonne.
The European Parliament voted in favour of EU rules labelling investments in gas and nuclear power plants as climate friendly. Austria’s climate protection minister said the country will bring legal action against the decision.
Austria is following through on a “use it or lose it” threat to eject Russia’s Gazprom from its large Haidach gas storage facility for systematically failing to fill its portion of the capacity there, the government said.
On the spot side, prices fell on an expectation of more wind power Thursday.
The German Thursday baseload dropped 30% to 212 euros/MWh.
The equivalent French price shed 13% to 348 euros/MWh.
Daily wind power output in Germany was forecast to rise 11.3 gigawatts (GW) day-on-day to 21.8 GW on Thursday, while in France it is expected to gain 1.5 GW to 4.8 GW, Refinitiv Eikon data showed.
Consumption in Germany was seen adding 140 MW to 58.5 GW on Thursday, while demand in France was expected to add 570 MW to 46.2 GW.
(Reporting by Forrest Crellin; Editing by Krishna Chandra Eluri)
A forward curve is a graphical representation of future prices for a commodity, such as energy, over time. It helps investors and traders understand price trends and make informed decisions.
Baseload power refers to the minimum level of demand on an electrical grid over a span of time. It is typically provided by power plants that can operate continuously to meet this demand.
CO2 allowances are permits that allow companies to emit a certain amount of carbon dioxide. These allowances are part of cap-and-trade systems aimed at reducing greenhouse gas emissions.
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