The European power spot prices continue to slowly fade yesterday, weighted by the rising renewable production. The day-ahead prices averaged 234.06€/MWh in Germany, France, Belgium and the Netherlands, -16.50€/MWh day-on-day and should continue to fall today as the German wind production is expected to surge above 20GW tomorrow.
Another volatile session for carbon prices took place on Tuesday, with a 5% rebound in the morning attributed mostly to short-covering following Monday’s sharp fall, and a retracement alongside the gas and financial markets in the afternoon. The EUA Dec.22 nonetheless managed to close at 81.30€/t, +1.21€/t from Monday’s settlement. Meanwhile, the British allowances UKAs behaved similarly to the EUAs last week ahead and dropped by 4.4% of the market’s first auction being held today as participants braced for the coming primary supply.
On the power forward curve, the afternoon retreat was stronger than the bullish morning due to the combined pressure from the fading EUA and gas prices, and the power prices eventually posted rather hefty losses from the previous session both on the short and long term contracts.
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