Nuclear Safety Concerns Spur European Power Price SpikesBy Icis Heren, PRNE
Monday, March 14, 2011
LONDON, March 15, 2011 - Prices on Europe's largest power market spiked violently on Tuesday
morning in response to 25% of Germany's nuclear capacity coming off line. The
decision stems from safety concerns following the series of explosions at
Japan's nuclear reactors.
By 12:30 London time, the price of contracts for power delivered in
Germany during April, May and June 2011 each posted record gains on Tuesday
over Monday's closing price.
April '11 Baseload rose EUR10.05 per megawatthour (MWh) from Monday's
close to trade as high as EUR64.25/MWh, May '11 Baseload gained EUR9.50/MWh
to trade at EUR64.50/MWh, while June '11 Baseload added EUR7.35/MWh session
on session to EUR60.00/MWh.
"These day on day gains are huge, and will impact markets all over
Europe," said Zoe Double, editor of European Daily Electricity Markets at
ICIS Heren. "Germany is the benchmark for European wholesale power prices,
and with connections to other markets getting stronger, the effects of this
decision will be seen in wholesale market price rises across the EU."
The EUR10.05/MWh gain session on session is a record for any April
contract since ICIS Heren began to assess the German power market in August
The German Calendar Year 2012 Baseload contract, for power delivered
continuously over the next year, has been reported trading as high as
EUR58.40/MWh on Tuesday, a rise of EUR2.50/MWh - gaining 4.5% in value in a
single session. The contract is the benchmark for European wholesale power
A day on day gain of this size on a calendar year contract has not been
seen since October '09, according to ICIS Heren data.
German Chancellor Angela Merkel announced on Tuesday that the seven
nuclear reactors in Germany that began operation before 1980 - the 840MW
Neckarwestheim 1; 926MW Philippsburg 1; 1,225MW Biblis A; 1,300MW Biblis B;
912MW Isar 1; 1,410MW Unterweser and 806MW Brunsbuettel nuclear reactors -
are all to remain offline for the next three months.
The 1,300MW Biblis B and 806MW Brunsbuettel units are already offline for
maintenance and in Brunsbuettel's case, extensive repairs. However, this
still removes 5.3GW from the market over the next few days - 25% of Germany's
installed nuclear capacity.
Notes to editors:
Last year, nuclear provided 23% of Germany's power generation, according
to figures from the German Energy and Water Association (BDEW).
Baseload power refers to power delivered continuously over that period -
24 hours a day, seven days a week.
The only time a monthly contract has made a greater session on session
gain was in October 2003, when the November '03 contract gained EUR16.925/MWh
day on day.
ICIS Heren is an information service provider for gas, liquefied natural
gas, power, carbon and coal market intelligence. We publish a suite of
tailored reports providing news, analysis, benchmark price assessments and
indices. Through our reports we aim to bring liquidity and transparency to
power and gas hubs, helping you analyse the sector and make informed business
Request your free sample report and find out more about ICIS Heren's
energy market coverage. Copy this link into your browser.
(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)
For more information visit www.icis.com/heren
Reed Business Information
ICIS Heren is part of Reed Business Information, www.reedbusiness.co.uk,
(RBI), a division of Reed Business and a member of Reed Elsevier plc (525),
(UK:REL) (US:RUK) (NL:45443) the world's leading publisher and information
RBI publishes more than 100 market leading publications, directories and
online services, and organises many industry conferences and awards. The RBI
portfolio includes Banker's Almanac, Computer Weekly, Farmers Weekly, Flight
International, ICIS, Kellysearch, New Scientist, Personnel Today, Totaljobs
and XpertHR. For a full listing visit www.reedbusiness.co.uk
For further information please contact: Manca Vitorino, German power specialist ICIS Heren t: +44(0)20-7911-1934 e: email@example.com www.icis.com/heren Zoe Double Editor, European Daily Electricity Markets ICIS Heren t: +44(0)20-7911-1875 e: firstname.lastname@example.org www.icis.com/heren
For further information please contact: Manca Vitorino, German power specialist, ICIS Heren, t: +44(0)20-7911-1934, e: manca.vitorino at icisheren.com; Zoe Double: Editor, European Daily Electricity Markets, ICIS Heren, t: +44(0)20-7911-1875, e: zoe.double at icisheren.com
Tags: Germany, ICIS Heren, London, March 15, United Kingdom