2010/09/08

EU Carbon Advances to Near Two-Month High as German Power Ga

anyone think this most recent disconnect between german power and carbon --see attached -- is sustainable? why? comments my way, folks EU Carbon Advances to Near Two-Month High as German Power Gains

By Mathew Carr
Sept. 8 (Bloomberg) -- European Union carbon-dioxide
allowances rose to near their highest level in more than two
months as German power advanced for a second session, making it
more attractive to sell electricity forward.
EU permits for December climbed as much as 16 cents, or 1
percent, to 15.90 euros ($20.17) a metric ton on London's
European Climate Exchange. The contract was at 15.80 euros as of
10:40 a.m. local time. It traded at 15.95 euros last week, its
highest level in more than two months.
German power for next year, a European benchmark contract,
rose 0.3 percent to 50.75 euros a megawatt-hour, extending
yesterday's 0.1 percent gain. Power utilities buy carbon permits
to hedge forward electricity sales.
Carbon prices in the world's biggest greenhouse gas market
have gained 15 percent from a five-month low on July 27. German
power has risen 3.1 percent in the same period, making carbon a
higher portion of electricity costs. Benchmark coal has fallen
1.3 percent in the period. Utilities require about double the
carbon permits per unit of power when burning coal instead of gas.


For Related News and Information:
Top Power Stories: PTOP <GO>
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>



--Editors: Rob Verdonck, Raj Rajendran


To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net


To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net