Calm day for the energy markets

The European power spot prices continued to progressively rise yesterday, supported by forecasts of weaker wind output combined with stronger power demand for today. The day-ahead prices reached 192.68€/MWh on average in Germany, France, Belgium and the Netherlands, +9.58€/MWh day-on-day.

The EUAs were seen overall flat yesterday with low exchanged volumes as the 50-day moving average quickly capped early (and slight) gains while the gas and power markets traded in a very narrow range. The EUA Dec.21 eventually closed at 58.93€/t, -22-cent from Monday’s settlement. Meanwhile, several EU countries like Poland, Spain and Portugal, were reported to have started issuing their 2021 free allowances, although we do not expect much bearish effect from it as the compliance companies are very likely to hold on to them in anticipation of the tighter supply to come over the 4^th phase of the EU ETS.

The power prices observed mixed but overall slight variations along the curve on Tuesday amid much calmer fuels markets compared to last week extreme volatility.