14 Feb Power
European power prices have retraced as forecast by IW2E, with all of the major hubs trending lower. Base Load German prices fell to the low €40s/MWh for spot and are now below €40/MWh for Q2. More renewable availability is coming into the grid. They were €55-56/MWh on the last issue. Prices in France are assessed in the mid-€30s/MWh, down from €54/MWh on the last issue. Nuclear plants are back to full operating capacity. UK power prices are assessed at €48.65/MWh, down from £52.00/MWh on the last issue. European carbon prices are trending higher and are assessed at over €9.00/t. It is pushing coal out of the money for power production. Holland cut natural gas output from its Groningen field by a fifth this month following fresh earthquake tremors. Output is capped at 21.60 bcm, down 60% from 2013’s peak. Outlook – Relatively stable prices, with a €1-2/t downside risk. Carbon prices stable.