• About
  • Privacy & Policy
  • Contact Us
Procurement Nation
  • Home
  • Suppliers
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Cryptocurrency
  • Contact Us
No Result
View All Result
  • Home
  • Suppliers
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Cryptocurrency
  • Contact Us
No Result
View All Result
Procurement Nation
No Result
View All Result

Moody’s sees German power prices normalising in 2023, 2024

Mark White by Mark White
November 30, 2021
in Shipping
0

High-voltage power lines and electricity pylons are pictured during sunset near the southern German city of Ulm, November 7, 2006. REUTERS/Alexandra Beier

Register now for FREE unlimited access to reuters.com

FRANKFURT, Nov 30 (Reuters) – Moody’s Investors Service in a report on Tuesday pegged German wholesale power in a range of 70-90 euros ($79.44-102.13) per megawatt hour (MWh) across the board through to the end of 2023, saying commodities prices should normalise from currently high levels.

German year-ahead baseload electricity, which is Europe’s benchmark, should average 84 euros in 2023 and 82 euros in 2024, the forecast said.

Electricity forwards have trebled this year in response to factors including unprecedented gas price surges, partly caused by Asia’s economic recovery from the coronavirus pandemic, gains in European carbon emission permit costs, firmer oil and low local renewable output.

Register now for FREE unlimited access to reuters.com

The German year-ahead contract on Refinitiv Eikon platforms stands at 140.7 euros , while the 2023 position last traded at 99.3 euros and 2024 at 84euros.

Power prices should remain high during 2022, Moody’s said, citing tight European gas stocks and the closure of Germany’s nuclear fleet at the end of the year.

Marcus Ferdinand, analyst at Thema consulting, said in a separate interview he upholds a CO2 price range between 60 and 65 euros a tonne, also citing gas and coal prices, inventories and cold weather.

Power generators must hold CO2 allowances to cover their output.

Moody’s analysts saw price pressure in coming years, due to the growth of renewable capacity, as governments demand a faster roll-out to meet new climate targets.

In France, whose power market is linked to neighbouring Germany’s, the Flamanville 3 reactor could start up operations next year.

Gas storage levels in the region should be replenished, helped by the likely commencement of operations of the Nord Stream 2 pipeline shipping Russian gas to Germany directly.

The scenarios should benefit power generators with a high share of low-carbon and fixed-cost generation such as Fortum (FORTUM.HE) or Verbund (VERB.VI), Moody’s said.

($1 = 0.8812 euros)

Register now for FREE unlimited access to reuters.com

Reporting by Vera Eckert, additional reportig by Forrest Crellin, editing by Miranda Murray and Ed Osmond

Our Standards: The Thomson Reuters Trust Principles.

Source link

Previous Post

Stocks and oil prices fall as Moderna CEO says vaccines will struggle with Omicron

Next Post

Germany’s DB Schenker to order 1,500 electric trucks from Sweden’s Volta

Mark White

Mark White

Mark White is the editor of the ProcurementNation, a Media Outlet covering supply chain and logistics issues. He joined The New York Times in 2007 as an commodities reporter, and most recently served as foreign-exchange editor in New York.

Next Post
Latam e-commerce giant MercadoLibre revenue soars on pandemic-led boom

Germany's DB Schenker to order 1,500 electric trucks from Sweden's Volta

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • About
  • Privacy & Policy
  • Contact Us
Call us: +1 234 JEG THEME

© 2021 Procurement Nation - Supply Chain & Logistics News

No Result
View All Result
  • Procurement
  • Supply Chain
  • Logistics
  • Science
  • Technology

© 2021 Procurement Nation - Supply Chain & Logistics News