Feb. 1 (Bloomberg) -- German power for 2014 gained the most in almost two year as European emission permits climbed after German Chancellor Angela Merkel backed plans to cut clean-energy subsidies, potentially boosting demand for carbon.
The electricity contract, a European benchmark, increased as much as 2.6 percent, its largest gain since March 2011, according to broker data compiled by Bloomberg. Its French equivalent rose 1.7 percent. European Union emission allowances for December climbed 25 percent on the ICE Futures Europe exchange in London. That’s the biggest increase since Dec. 20, 2011, broker data on Bloomberg show.
German 2014 baseload power, for delivery around the clock, gained 1.05 euros to 41.45 euros ($56.81) a megawatt-hour. The French contract rose 75 cents to 44.50 euros. European emission permits for delivery in December jumped as much as 93 cents to 4.35 euros a metric ton, and were at 4.27 euros at 4:59 p.m. on London’s ICE Futures Europe exchange. Emission prices influence electricity production costs.
Available generation capacity in Germany is set to rise to 64,000 megawatts on Feb. 4 from 62,000 megawatts today, according to data on the European Energy Exchange AG website. In France, nuclear output is set to climb to 58,000 megawatts on Feb. 6 from 57,500 megawatts tomorrow, data from Reseau de Transport d’Electricite show.
Electricite de France restarted its 910-megawatt Blayais-4, its 1,335-megawatt St. Alban-2 and the 910-megawatt Bugey-3 reactors today, according to RTE. The 1,300-megawatt Cattenom-2 unit is offline for a “short” maintenance, EDF said on its website.
RWE AG will restart its 608-megawatt Gersteinwerk K2 coal plant in Germany on Feb. 3, the company said on its website.
--With assistance from Rachel Morison in London. Editors: Alessandro Vitelli, Rob Verdonck