×
×
Markets & Forecasts

European coal plants see improved profit margins in October

Higher prices for front-month power contracts and relatively low coal prices have resulted in better profit margins for coal-fired generators this month Higher prices for front-month power contracts and relatively low coal prices have resulted in better profit margins for coal-fired generators this month.
By Andreas Walstad 24 October 2019 Europe & Russia / Pipelines, Storage & Power 0 34717

Profit margins for coal-fired power generators in countries such as Germany and Spain have looked healthier so far in October than they have in previous months, according to Interfax calculations for front-month spreads.

Chart showing Germany's front-month baseload power prices

The German front-month clean dark spread – a proxy for the profit obtained from producing power after taking the cost of coal and EU carbon allowances into account – averaged €5.85/MWh ($6.40/MWh) for modern and fuel-efficient coal plants in October, according to Interfax...