Carbon and power prices soared amid spiking gas prices

The European power spot prices slightly faded yesterday, weighted by forecasts of stronger wind and solar generation despite the clean gas costs surging by nearly 20€/MWh. The day ahead prices hence averaged 149.58€/MWh, -5.60€/MWh day-on-day but still 3.68€/MWh above last week.

The EUA prices started Monday on a bearish tone, driven down by macroeconomic concerns and a subsequent fall in equities. But the retracement was only short-lived and the carbon prices started to sharply rebound midday, buoyed by the soaring gas prices after Gazprom booked lower-than-expected additional transit capacity during the monthly capacity auction. Climbing above its 5 and 20-day moving averages, the EUA Dec.21 eventually settled at 60.68€/t with a 1.20€/t (+2.00%) daily gain.

The spiking gas prices lifted the power curve as well, with most of the monthly contracts rising by at least 10% compared to Friday’s settlement. Gains were more moderate on the front calendar contracts, with the German cal22 rising by 5.88€/MWh (+5.22%) from the previous session, and the Cal23 and beyond contracts even extending slight losses.

EnergyScan - Power market news
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