German power for delivery next month jumped to the highest since January as rising fuel prices boosted costs for generators.
The contract yesterday gained 14 per cent since Aug. 26 as the equivalent coal contract rose 6.7 per cent in the period and European emissions permits climbed 25 per cent, according to broker and exchange data compiled by Bloomberg.
Germany boosted its share of power supply from renewable energy sources such as wind and solar to 23 per cent last year from 17 per cent in 2010, increasing its reliance on less predictable forms of generation. Renewable energy gets priority access to Germany’s grid and solar output is highest in summer months, when sunshine hours are greater and electricity demand for heating is lower.
“If there is a lack of wind in October then prices could really rise, especially if it is cold,” Daniel Juul Jensen, a senior trader at Danske Commodities A/S, said yesterday by phone from Aarhus, Denmark. “People are a bit afraid of no wind and no solar next month.”