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German Utilities to Benefit From Clean-Energy Aid Cuts: Goldman 2014-01-20 14:37:43.745 GMT
By Stefan Nicola Jan. 20 (Bloomberg) -- Slower growth in renewables, as proposed by Economy and Energy Minister Sigmar Gabriel, will benefit coal- and gas-fired plants as they raise output to meet demand, Goldman Sachs says in research note. * More thermal power output needed over time as pace of renewables growth insufficient to counter loss of atomic reactors closing 2015-2022 * More older coal-fired plants likely to shut as Gabriel’s proposals lack short-term commitment to capacity mkt * Forward power prices to rise over time, “reflecting a likely increasing share of higher-priced gas” * EON, Verbund, CEZ, GDF Suez, RWE, Fortum to benefit from higher prices; Goldman sees EPS impact (unhedged on 2015e) of +25% to +65% from EU10/MWh increase in prices * NOTE: German clean-energy companies today said govt plans to accelerate cuts in solar and wind-power aid threaten shift to renewables NSN MZPCGU6S972F <GO>
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