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German utility E.ON sells 99% of Isar 2 nuclear site’s 2022 output

German utility E.ON (EONGn.DE) said on Wednesday it had sold 99% of the remaining 2022 output from its Isar 2 nuclear plant ahead of the reactor’s planned closure in March 2023.

The company’s presentation slides for nine-month financial results showed power production from Isar 2 in E.ON’s non-core PreussenElektra unit was sold at 99 euros ($99.59) per megawatt hour (MWh), as of Sept. 30.

Hedging rates of forward generation volumes are tracked by traders and analysts to assess what supply is tied up with counterparties and the value of production.

Isar 2 is a 1,400 megawatt (MW) plant in Bavaria able to power the equivalent of a metropolis.

The over-the-counter price of German round-the-clock power from all conventional energy sources to be delivered in 2023 closed at 331 euros/MWh on Tuesday, Refinitiv Eikon data showed.

The discrepancy vis-a-vis nuclear power alone mostly comes from pricier gas price elements in the wholesale level where the feedstock was at sky-high levels.

The wholesale market’s benchmark position at times shot up to above 1,000 euros at then end of August due to Russian gas supply worries in particular.

Decisions by the Berlin government to keep Isar 2 open on standby, along with two other remaining nuclear plants, to support German energy supply in the winter season and avoid shortfalls have contributed to price-dampening effects.

The three reactors had previously been earmarked for closure on Dec. 31, 2022. The last possible closure date for any of them for the time being is April 15, 2023.

Sector peer Uniper offered some hedging rates for hydropower on Nov. 3.

Source: Reuters