EU’s ban on Russian coal triggered early rise of power prices

The European power spot prices averaged 229.75€/MWh for today in Germany, France, Belgium and the Netherlands, +27.10€/MWh from Friday but -36.48€/MWh week-on-week with the largest variation posted by the German prices due to a sharp drop of wind output forecasted for the upcoming hours. The French prices however faded by 19.06/MWh from Friday as today’s warmer temperatures are expected to curb the country’s power demand.

On the curve, the power prices traded sideways with a significant volatility, first strongly lifted by the EU’s decision to ban Russian coal imports to Europe as of August, but reversing mid-day and giving part of their early gains in the afternoon following the retracing gas market. Most contracts nonetheless managed to post end the session higher than the previous, although on a week-on-week basis only the back end of the curve posted gains. 

Friday marked another illiquid and rangebound session for the EUAs, with an early but quickly corrected upward move attributed mainly to Thursday’s bullish momentum and a rather flat afternoon. The EUA Dec.22 eventually closed the day and week at 80.09€/t, +15-cent from Thursday’s settlement and +1.60€/t (+2%) week-on-week. The market expects a slow activity in the upcoming days as we enter the Easter week, and without further developments on the Ukraine situation and West’s sanctions the carbon prices are hence likely to remain in their 75-82€/t range.