Policy & Regulation

Higher fuel and carbon prices helping ‘green’ utilities

European utilities with high exposure to renewables and nuclear are gaining from the rise in power, gas and carbon prices European utilities with high exposure to renewables and nuclear are gaining from the rise in power, gas and carbon prices.
By Andreas Walstad 13 August 2018 0 32115
A Vattenfall coal-fired power plant in Germany A Vattenfall coal-fired power plant in Germany. (Vattenfall)

Higher prices for fuel and EU carbon allowances are pushing up wholesale power prices and increasing profits for utilities with a large exposure to carbon-free generation assets.

Year-ahead baseload prices in Europe’s largest power markets increased in the first half of 2018 compared with the same period last year. In France and Italy, year-ahead baseload prices were on average around 19% higher than last year, while the UK and Germany saw gains of around 9% and 26% respectively, according to French utility EDF’s half-year earnings report,...