CEZ emissions expected to have fallen in first half of 2013
Czech utility CEZ's emissions are expected to have declined in the first half of this year, but it still cited costs associated with the EU emissions trading system (ETS) as a challenge to its business in the first half of 2013.
The expected decline in emissions chiefly stems from a 7% year-on-year drop in CEZ's coal-fired electricity production, to just over 15TWh, according to company results for the first half of 2013.
Nuclear power generation rose by 2% because of fewer shutdowns and more capacity at the Dukovany plant.
As a result, German analyst Tschach Solutions, now owned by ICIS, expects that CEZ's emissions fell by as much as 12%, or 2.1 million tonnes of carbon dioxide equivalent (mtCO2e), to 15.9mtCO2e in the first half of this year.
CEZ said its income had been hit by the fact it now receives fewer emissions allowances for free than in the first EU ETS phase, which ended in 2012.
CEZ has locked in the forward price of almost three-quarters of its expected power production for next year. In total, it has hedged 72% of its forecast 2014 generation.
The hedged production totals more than 41TWh, up 18% since the start of the year (see EDCM sister publication EDEM 28 February 2013). This hedging normally includes the emission costs of generating the power.
The utility has also sold forward more than half of its expected power production for 2015 and nearly 25% for 2016.
CEZ's net income grew by 5.3% year on year to Czech koruna (Kc) 28.6bn (€1.1bn). Karolina Zagrodna/Marie-Louise du Bois
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