September 10, 2018 / 9:46 AM / 9 months ago

EUROPE POWER-CO2 prices surge, driving curve contracts to new highs

FRANKFURT, Sept 10 (Reuters) - European power contracts for year-ahead delivery set record highs on Monday, mirroring gains in the carbon, gas and oil markets which provide inputs for generators.

* German power for 2019 delivery, the European benchmark was 3 percent higher at 55.7 euros ($64.50) a megawatt hour (MWh) at 0935 GMT, having hit a contract high of 55.85 euros earlier in the session..

* Germany’s 2020 price at 50.95 euros was 3.8 percent higher and at an all-time record, and 2021 was at a record 47.5 euros, up 1.6 percent.

* The French Cal’19 delivery contract gained 2.7 percent to a contract high of 61.5 euros and 2020 was also at a record 54.25 euros, up 2.4 percent.

* European December 2018 expiry carbon allowances, which operators buy to cover their carbon emissions, were up nearly 8 percent, having risen 8 percent in the previous session already, to stand at 25.1 euros a tonne.

* Carbon prices have risen sharply in recent weeks and months on EU reforms that aim to tighten supply from next year. Buyers believe they must cover early, speculators have come in, and some analysts see the price at 30 euros by year-end.

* European delivery AP12 coal for 2019, another big cost factor for power generators, was in a $94-95.25 a tonne bid-ask range, having settled at $95.5 previously.

* In the day-ahead power market, prices were down in Germany on higher expected wind supply and up in France, where a couple more nuclear reactors will delay restarts, tightening supply to the market.

* The German base load contract for Tuesday traded at 57.5 euros, down 8 percent from the price paid for Monday delivery. Its French equivalent, at 64.5 euros, was 1.2 percent up.

* A ThomsonReuters forecast showed German wind power production is expected to rise to 13.3 gigawatts (GW) on Tuesday, compared with 7 GW expected on Monday.

* In France, nuclear power availability stood at 74.7 percent of total capacity.

* The Gravelines 1 plant is to add 5 days to its current outage to reopen on Sept. 20 while Gravelines 6 will also add 5 days to restart on Sept. 17, operator utility EDF reported.

* In eastern Europe, the Czech year-ahead contract also struck a contract high, adding 2.7 percent to 56.8 euros. Day-ahead Czech baseload did not trade after Monday delivery had last closed at 55.5 euros. ($1 = 0.8636 euros) (Reporting by Vera Eckert, editing by Kirsten Donovan)

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