European Union carbon permits had their biggest monthly gain in a year after the bloc cut 2014 supply by about a fifth to help deal with a glut.
German power for next-year delivery, a benchmark contract in Europe, reached the lowest level since March 2005 as coal and emissions permits slid.
Natural gas prices in Europe are poised to drop more than 20 percent in the first quarter amid the mildest weather since 2008, as snow storms push U.S. costs to a four-year high.
Utilities operating in Germany are divided over whether the government should pay generators to keep uneconomic power plants open to ensure supply can meet peak demand.
An emergency plan to prop up prices in the European Union’s carbon market, the world’s biggest, will probably start in the middle of next month, the European Commission said today.
European Union governments and the bloc’s executive arm are splitting over how to guarantee electricity supply as the region builds more renewable power.
Citigroup Inc. is increasing its gas and power business in Europe as competitors from Bank of America Corp. to Deutsche Bank AG withdraw amid tighter regulation and staff cuts at utilities.
Continental Europe will probably be warmer than average for a third month in February as the milder counterpart of the polar vortex that gripped North America helps to extend a decline in power and gas prices.
European Energy Exchange AG will set up its carbon exchange, the world’s second-biggest emissions bourse, as a wholly owned subsidiary, according to an e-mailed statement from the company.
The biggest changes to Europe’s energy market since it was liberalized in the 1990s probably will miss a third deadline, traders and analysts said as the second target date passed.