Nuclear Safety Concerns Spur European Power Price Spikes

By 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.

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    For further information please contact:
    Manca Vitorino,
    German power specialist
    ICIS Heren
    t: +44(0)20-7911-1934

    Zoe Double
    Editor, European Daily Electricity Markets
    ICIS Heren
    t: +44(0)20-7911-1875

For further information please contact: Manca Vitorino, German power specialist, ICIS Heren, t: +44(0)20-7911-1934, e: manca.vitorino at; Zoe Double: Editor, European Daily Electricity Markets, ICIS Heren, t: +44(0)20-7911-1875, e: zoe.double at

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