FRANKFURT – Utility company E.ON said on Wednesday it had sold forward 97% of its German nuclear power output in 2021 and 74% of its 2022 output at prices well below the current wholesale market from its reactors ahead of their pending closure.
The company has to date also sold its entire output in the current year from the reactors at its non-core PreussenElektra unit, it showed in presentation slides as it reported financial results for the first nine months of the year.
Hedging rates of forward generation volumes are tracked by wholesale power market traders and analysts to assess what supply is tied up with counterparties and the value of future production.
As for achieved prices, E.ON’s 2021 and 2022 nuclear delivery was sold at 45 euros ($51.99) per megawatt hour (MWh) and at 48 euros/MWh respectively, the slides showed. Production in 2020 had fetched 45 euros/MWh.
By comparison, over-the-counter prices for German round-the-clock power from all conventional energy sources to be delivered in 2022 closed at 110.8 euros/MWh on Tuesday, according to Refinitiv Eikon data [EL/DE].
E.ON retained its Brokdorf, Grohnde and Isar 2 reactors in asset swap deal in which it transferred minority interests held by Preussen Elektra in the RWE-operated Emsland and Gundremmingen C plants.[POWER/DE]
Under Germany’s nuclear exit plan, Grohnde, Brokdorf and Gundremmingen C will close at the end of 2021 and Isar 2 and Emsland at the end of 2022.
Rival Uniper last week detailed some hydropower and nuclear hedges.
($1 = 0.8655 euros)