German year-ahead baseload power reached Eur43.80/MWh Monday midday, a5.5-year high for the contract, boosted by bullish coal, data from EEX and S&PGlobal Platts showed.
* German Cal-19 base seen at Eur43.80/MWh
* Coal trades about $1/mt higher Monday
* Year-ahead power, coal last higher Jan 2013
The European benchmark contract pushed nearly 70 euro cent/MWh higherafter already seen strong gains over the past week.
"The year-ahead has been bullish for a week. Especially coal has pickedup and the current weather outlook with low wind and warm temperatures, whichalso lifted July and Q3 prices, does support as well," a Germany-based tradersaid. "The bullish sentiment on the near curve does filter through to thelong-term contracts. I see still potential for the year-ahead to rise. EUAsare a bit indecisive currently but if the coalition in Germany falls apart andthe Green Party comes back into the picture, EUAs could see another revival,"he added.
CIF ARA Cal-19 coal rose over $1/mt in the morning to $90.60/mt, which isa fresh five-year high for the contract on tight supply before easing slightlyto $90.40/mt Monday afternoon. Coal and power for front-year were last seenhigher in January 2013 for closing prices.
German year-ahead power baseload closed at Eur43.95/MWh at January 15,2013.
Carbon allowances for December continued to firm as well Mondayafternoon, seen last at Eur15.17/mt, up 18 euro cent.
Not only are curve prices rallying on Germany's power market but alsoshort-term traded power, although different fundamentals drive the spotmarket.
While coal and carbon allowances are the biggest drivers for forwardpower prices in Germany, the spot is highly reactive to renewables supply.
With below 5 GW wind generation forecast for most of the week, spotprices trade close to the Eur50/MWh mark, sharply above the year-to dateaverage for 2018 of Eur35.77/MWh for day-ahead base delivery, exchange datashowed.
