Page 106 - KELAG Annual Report 2017
P. 106

At an annual average of USD 55 per barrel, the price for   increasing  prices  on  the  electricity  wholesale  markets  in
           Brent crude oil was around 20% above the prior-year level   2017.
           of  USD  45  per  barrel.  Although  OPEC  decided  to  cut
           production output on 30 November 2016, a decision joined   The  price  for  base-load  electricity  on  the  EPEX  SPOT
           in on by Russia, the price of oil reached a low for the year in   averaged  EUR 34.2  per  MWh  in  spot  trading  in  2017;  for
           June. The latest data on the global economy drove prices to   peak-load  electricity,  the  price  was  EUR 42.7  per  MWh.
           around  USD  67  per  barrel  at  year-end.  On  30 November   Compared  to  2016,  this  corresponds  to  an  increase  of
           2017,  OPEC  and  ten  non-OPEC  countries  extended  their   EUR 5.2 per MWh (around 18%) for base-load electricity and
           production  limit  until  the  end  of  2018.  The  reduction   EUR 7.7 per MWh (around 22%) for peak-load electricity.
           corresponds to around 2% of global production. Analysts
           view a further increase in the price of oil with skepticism, as   The price situation on the forward market was similar to the
           with higher prices, production in the USA is expected to   spot market, recording an increase of around 22%, with a
           increase.                                     substantial increase taking place in the second half of the
                                                         year. Forward contracts in 2017 for the year 2018 increased,
           Gas prices on the Austrian spot market averaged EUR 18 per   at EUR 32.4 per MWh on average for base-load electricity
           MWh in 2017 and were thus above the level of the prior year   and  EUR 40.5  per  MWh  for peak-load  electricity.  In  2016,
           of EUR 14 per MWh. The average forward price also stood at   2017 forwards were traded at EUR 29 per MWh on average
           EUR 18 per MWh, with a low of around EUR 16 per MWh in   for base-load electricity and EUR 35 per MWh for peak-load
           July. At the end of November, the price was around EUR 19   electricity.
           per MWh.
                                                         Prices  on  the  forward  market  at  the  beginning  of  2018
           The prices for hard coal stood at an average of USD 73 per   indicate  the  sustained  recovery  of  electricity  prices.  For
           metric ton in the financial year 2017, well above the annual   instance,  the  market  price  for  base-load  electricity  for
           average price of the prior year (around USD 57 per metric   delivery in 2019 was around EUR 35 per MWh and for peak-
           ton). The global coal market is currently marked by strong   load  electricity  around  EUR 44  per  MWh.  Factors  that
           demand in the Asia/Pacific region, in particular. The price   indicate the long-term stability of electricity prices include
           for hard coal is currently around USD 88 per metric ton.   the expected closure of additional coal-fired power plants
                                                         in the context of efforts to protect the climate as well as the
           With an average of EUR 5.8 per metric ton of CO2, prices in   positive economic environment in most of the EU countries.
           European emissions trading in 2017 were nearly 9% higher   Moreover, the reform measures decided at the end of 2017
           than the level of prices in 2016. The increasing prices for   on EU-wide emissions trading as of 2020 are likely to lead
           fuels and CO2 emission allowances, additional closures of   to an increase in the price of CO2 allowances before this. In
           conventional  power  plants  as  well  as  the  continuous   light  of  this,  it  can  be  expected  that  the  profitability  of
           production outages in French nuclear power plants led to   KELAG’s hydroelectric power plants will improve following
                                                         a phase of several years of declining electricity prices.
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