News

January 24, 2010

The Week In Alternative Power: Speculators Head For The Exits, As Markets Dip On A Stronger Dollar and Chinese Belt-Tightening

By Sally White

After such a bullish start to 2010, alternative energy markets during the past week under pressure from a buoyant dollar, from Chinese efforts to rein in soaring economic growth, from World Bank warnings on the risks to global recovery and from bad news on emission pledges - that sent speculators dashing for safety.

European carbon futures dropped by over two per cent as energy prices followed down power prices in Germany and the UK. EU Allowances for delivery in December opened down slightly then fell as low at €13.03 a tonne, down 34 cents. Spot EUAs were down 33 cents or 2.5 per cent at €12.83. Benchmark CER prices fell 14 cents or 1.2 per cent to €11.52 a tonne, setting the EUA-CER spread at around €1.50.

German power slipped by 10 cents to €49.60 a megawatt hour while British gas futures fell 0.56...