EUAs fell further on dropping fuels and supply concerns

The European power spot prices continued to rise yesterday amid forecast of warming temperatures strengthening the demand for cooling and weak renewable production. Prices climbed by 4.29€/MWh in Germany, France, Belgium and the Netherlands to reach 86.83€/MWh on average.

The EUA dropped by 2.8% on Tuesday amid pressure from the falling gas and coal prices and lingering concerns over the looming increased supply induced by the previous day’s publication of higher-than-expected German free allocation plans.

Tracking the sharp retreat of fuels and emissions prices, the power prices posted heavy losses along the curve yesterday, with the short-term contracts extending the largest losses due the stronger fall of the underlying gas prices.