German 2008 power price hits high as coal rises to $100/tonne

8 October 2007 – German electricity prices for next year climbed to their highest since June as coal costs advanced to $100 a metric tonne for the first time.

According to Bloomberg, next-year power in Germany, Europe’s biggest electricity market, climbed a third day, gaining as much as 40 cents, or 0.7 per cent, to €57.30 ($80.75) per MWh, according to GFI Group Inc. prices on Bloomberg at 12:30 p.m. Berlin time. That is the highest since June 14.

Rising prices for fuels such as coal increase production costs at power plants. More than a fifth of Germany’s electricity is generated by burning hard coal. Coal for delivery next year to northwest Europe rose 2 per cent to a record $100 a metric tonne, according to ICAP Plc prices on Bloomberg.

Emission permits for December 2008, which can also add to generation costs at plants burning fossil fuels, gained 0.8 per cent to €21.70 a metric tonne on the European Climate Exchange in London.