EUAs took a breath from last week’s rally

The European power spot prices remained rather stable yesterday, torn between expectations of higher power demand and weaker wind production, and forecasts of improved French nuclear and hydro generation. Still below both clean gas and coal costs, the day-ahead prices reached 74.18€/MWh on average in Germany, France, Belgium and the Netherlands, +2.19€/MWh day-on-day.

The EUAs took a breath from their sharp rally that drove them up by 12% last week, the bellwether posting slight losses yesterday morning amid pressure from retreating gas prices, easing equities and the Relative Strength Index deep in overbought territory, before mostly recovering over the afternoon.

Weighed by the fading gas and carbon markets, the power prices posted mostly slight losses along the curve, although some contracts such as the French Q3 2021 managed to extended some gains.