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Europe Power-German curve rises on bullish gas
March 14, 2012 / 3:17 PM / 6 years ago

Europe Power-German curve rises on bullish gas

* Prompt eases on renewable energy output
    * French demand to drop ahead of weekend
    * E.ON posts 2.22 bln euro loss on nuclear phase out

    LONDON, March 14 (Reuters) - German benchmark
year-ahead power rose almost 2 percent on Wednesday as curve
contracts were driven by higher gas prices, while nearby
contracts fell on strong renewable energy production and weaker
demand due to above-average temperatures.	
    German 2013 baseload power rose to 53.05 euros per
megawatt-hour on Wednesday, up 95 cents on the previous
session's closing price as contracts tracked gains in the gas
market, where prices pushed higher as traders hedged against
further gains. 	
    "The German curve is up on gas and supply and demand
fundamentals are weighing on the prompt with high renewable
production," one European power market trader at a utility said.	
    In France, curve contract trading was thin and prices moved
sideways at 53.45 euros.	
    Closer in, prices eased ahead of an increase in solar and
wind power production in Germany.	
    German day-ahead baseload power fell 1.40 euros to 45.60
euros and Friday power traded as low as 44.00 euros.	
    Weather forecasts by Germany's DWD showed warmer weather
spreading across the country from the south on Thursday and
Friday.	
    In France, weak demand weighed down baseload spot prices,
which also fell 1.40 euros to 46.50 euros.	
    Demand for power was expected to fall to 65.1 gigawatts at
peak time on Thursday and to 62.8 GW on Friday, grid operator
data showed.	
    Friday temperatures were expected to exceed seasonal norms
by 3.4 degrees Celcius.	
    In other news, Germany's E.ON posted a 2.22 billion euro
loss in 2011 as the utility suffered from the sudden closure of
the country's oldest nuclear plants in the wake of Japan's
Fukushima accident and a weak gas business. 	
    But the company also said it had renegotiated gas purchasing
contracts with Norway's Statoil and with more favourable terms
already negotiated last year for 40 percent of E.ON's gas
procurement portfolio, the development in Norway leaves just
over 30 percent of total contracts up for negotiations, E.ON
executives said. 	
	
 (Reporting by Karolin Schaps; Editing by Alison Birrane)

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