2010/09/08

dark?EU Carbon Falls From Near Two-Month High as German Powe

german 2011 dark spread graph attached...comments my way EU Carbon Falls From Near Two-Month High as German Power Drops

By Mathew Carr
Sept. 8 (Bloomberg) -- European Union carbon-dioxide
allowances fell from near their highest level in more than two
months as German power declined, making it less attractive to
sell electricity forward.
EU permits for December dropped 14 cents, or 0.9 percent,
to 15.60 euros ($19.88) a metric ton on London's European
Climate Exchange as of 5:33 p.m. It traded as high as 15.90
euros earlier, near a two-month high of 15.95 euros on Sept. 3.
German power for next year, a European benchmark contract,
dropped 0.5 percent to 50.35 euros a megawatt-hour, the third
decline in the past four trading sessions. Power utilities buy
carbon permits to hedge forward electricity sales.
Carbon prices in the world's biggest greenhouse gas market
have gained 14 percent from a five-month low on July 27. German
power has risen 2.2 percent in the same period, making carbon a
higher portion of electricity costs. Benchmark coal for 2011 has
fallen 1.2 percent in the period. Utilities require about double
the carbon allowances per unit of power when burning coal
instead of gas.

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Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew