Except in France where they rose by 16€/MWh, the European power spot prices were mostly stable yesterday as the forecasts of stronger renewable and nuclear production offset the higher gas prices. The day-ahead prices averaged 302.57€/MWh in Germany, France, Belgium and the Netherlands, +0.26€/MWh day-on-day.
Ignoring the firmer gas prices, the EUAs continued to drop toward 80€/t on Tuesday as traders took their profits ahead of the options expiry scheduled today. The carbon benchmark contract fell as low as 78.25€/t but quickly rebounded as the 80€/t continued to act as a magnet due to the large open interests of calls at that strike price and below, with the market keeping all these options in the money for their last day. The EUA Dec.21 eventually closed at 79.48€/t, -2.63€/t day-on-day.
The British government published after market close its decision not to intervene following the activation of the UK cost containment mechanism at the end of November, stating its intention to support the ‘continued effective functioning’ of the market. The last UKA auction of 2021 was held yesterday.
The power forward prices posted slight losses along the curve, driven down by the fading EUAs, although some deliveries managed to moderately rebound as the end of the session with support from the late rise gas prices.
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