The European power spot prices eased yesterday as the electricity consumption is expected to further fade today amid warmer temperatures while the wind, solar and hydro generation are all forecasted to rise. The day-ahead prices averaged 267.21€/MWh in Germany, France, Belgium and the Netherlands, -22.30€/MWh day-on-day.
The carbon prices edged down on Tuesday, slightly weighed by the first weak auction result in a week but driven mostly by technicals and the market’s current low liquidity for a lack of directional geopolitical development. The EUA Dec.22 contract indeed traded rangebound between its narrowing 5 and 20-day moving averages, before closing the day at 77.43€/t, -0.85€/t from Monday’s settlement. The bullish momentum of the carbon prices’ upward move initiated early last week is now clearly weakening, and the heavy Polish auction volumes scheduled to be sold today might pressure the market as the sales will also include part of the allowances from the country’s cancelled previous auction. On the other hand, the strong opening of equities could provide enough support to keep the emissions prices stable.
The power forward prices posted moderate gains along the curve (considering the recent massive volatility of the market), buoyed by a bullish opening of the gas market.
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