UPDATE 3-Power, coal, carbon prices rise on German election

Mon Mar 28, 2011 12:13pm GMT
 

* 2012 power prices at highest since late 2008

* Carbon, coal gain 2 pct

* Market expects oldest nuclear reactors to stay offline

(Updates throughout)

By Karolin Schaps and Henning Gloystein

LONDON, March 28 (Reuters) - European energy prices jumped on Monday as a key Green Party victory in German state elections underlined concerns that widespread anti-nuclear sentiment may permanently shut Germany's oldest reactors.

German baseload electricity contract for 2012 rose BY1DE-1Y to its highest since before the global financial crisis slashed power prices in late 2008, while the price of coal for delivery into Europe next year ICPAP2YZ2 and for permits to emit climate-warming carbon both rose nearly 2 percent. CFI2Zc1

"The power market is taking the view that certain plants are not coming back. If there is a hard, fast decision (on keeping reactors offline) prices would go in an upwards trend," said Martin Young, Executive Director for Equities Research at investment bank Nomura.   Continued...

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