Uniper sells ahead German hydro, Swedish nuclear/hydro power
Forward hedges of its Swedish nuclear and hydro power for the same three years comprised over 85 percent, over 65 percent and over 35 percent of planned output respectively, according to the slides that were presented amid data for operations in full year 2017.
New Delhi: German utility Uniper hedged over 80 percent of hydropower production in Germany for 2018, over 75 percent of 2019 and over 15 percent for 2020 output, slides released for an analyst call on Thursday showed.
* Forward hedges of its Swedish nuclear and hydro power for the same three years comprised over 85 percent, over 65 percent and over 35 percent of planned output respectively, according to the slides that were presented amid data for operations in full year 2017.
* Achieved German prices for last year had been 31-35 euros ($38.40-43.35) a megawatt hour (MWh), the slides showed.
* Those for 2018 were at 25-29 euros, for 2019 at 20-24 euros and for 2020 at 28-32 euros.
* Achieved Nordic prices for the three years ahead were 21-25 euros, 20-24 euros and 21-25 euros respectively, while 2017 prices had averaged at 25-29 euros.
* By comparison, the current wholesale market price payable for round-the-clock power delivered in 2019 stand at 34 euros/MWh is , which is 7 percent down from its start-of-the-year level of 37 euros, according to Thomson Reuters data.
* German power prices are the European benchmarks.
* Hedge rates are tracked as an indication of earnings, to assess the size of future volumes already tied up with counterparties, and the value of forward production.
* Wholesale prices had gained nearly 30 percent last year due to weather-related demand patterns and amid extended French nuclear reactor outages, having been in an almost continuous downtrend between 2011 and 2016.
* But positive impact on generation margins will take several years to work its way through the system.
Source: Reuters
