Emissions Trading / Carbon Market News (2019-01-04)

Dear Sir or Madam,

The share of renewable energies in power generation in Germany has cracked 40% last year. On average, 40.4% of the electricity produced in Germany, equivalent to 219 terawatts, came from wind, solar, biomass, hydropower or other renewable sources. At 20.4%, wind power was the clear leader, followed by photovoltaics (8.4%) and biomass (8.3%). For the first time ever in Germany, the renewable industry has generated more electricity than the burning of coal. Brown coal was at 24.1% in 2018 and hard coal at 13.9%. Including gas (7.3%), fossil energy producers only accounted for 45% last year.

In the 49th week of 2018, 53.5% of energy production was generated by renewable energy, but the best weekly value was in the 52nd kW of 2017, where as much as 58.3% of the electricity came from renewable sources.

Since 2010, the share of renewables of 19.3% has more than doubled in Germany and it has been the network operators despite the many times in the past years predicted blackouts have always managed to keep the network stable, even if the cost has caused billions. The completion of the power lines to the south of Germany is therefore more important than ever as the proportion of renewable energies increases.

Although oil prices rose significantly in the last week due to speculation that Saudi Arabia had reduced its oil production, prices for European emission allowances (EUA) fell and closed below the € 24 mark.

This week, the auctions at the Leipzig EEX start again after the winter break. Monday, Tuesday and Thursday each want to find 2.495 million EUA customers, for a total of 7.485 million EUAs. In the following week, there are significantly more due to the Polish auction, namely 11.9135 million EUA and 640,000 emission allowances for air traffic (EUAA).

(Average Quotes Exchange / OTC)      
Instrument 2018-12-28 2019-01-04 Change
EUA (Spotmarket) 24.95 EUR 23.49 EUR -1.46 EUR
EUA (December-2019-Future) 24.98 EUR 23.73 EUR -1.25 EUR
CER (Spotmarket) 0.25 EUR 0.24 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 53.54 USD 57.07 USD +3.53 USD
EURO (Currency, Forex) 1.1440 USD 1.1395 USD -0.0045 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220.

With kind regards,

Advantag Services GmbH