+------------------------------------------------------------------------------+
EU Carbon Price Falls Along With German Power; Volumes Decline
2010-07-20 17:08:18.952 GMT
By Mathew Carr and Lars Paulsson
July 20 (Bloomberg) -- Carbon allowances in the European
Union's emissions trading system fell along with German power,
reducing the incentive to sell electricity forward.
EU permits for December 2010 lost 2.3 percent to 14.22
euros ($18.34) a metric ton as of 5:40 p.m. on London's European
Climate Exchange. The EU cap-and-trade system is the world's
largest. The volume traded of the futures contract dropped to
8.9 million tons, from 13.8 million yesterday.
German baseload power for 2011, the European benchmark,
declined 2.6 percent to 49.70 euros a megawatt-hour, according
to broker prices on Bloomberg. That's the biggest one-day drop
since May 17. Power for next month dropped 2.4 percent to 43.30
euros, the biggest fall since July 1.
Lower power prices can cut the motivation to sell
electricity for delivery months or years later, curbing demand
for emission permits. The power contract gives a measure of
industrial demand for power.
Electricite de France SA plans to start its 900-megawatt
Dampierre-4 nuclear reactor on July 27, it said today on the
Reseau de Transport d'Electricite website.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
Sustainability, environmental indexes SEI <GO>
--Editors: Mike Anderson, Stephen Cunningham.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net;
Lars Paulsson in London at +44-20-7673-2759 or
lpaulsson@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
