The power spot prices slightly rebounded in northwestern Europe yesterday, supported by forecasts of easing wind output. Prices however faded in France where the nuclear availability is expected to improve and the power demand to weaken. The day-ahead contracts averaged 176.23€/MWh in Germany, France, Belgium and the Netherlands, +6.39€/MWh day-on-day.
The carbon prices started Wednesday on a bearish tone, dropping by nearly 80-cent as the market was driven down by the falling gas prices. The EUAs however managed to recover in the afternoon alongside the energy complex with most of the gains seen at the end of the session, but similarly to the previous day the 50-day capped the gains and the Dec.21 contract eventually settled only 9-cent from Tuesday’s close at 59.90€/t.
The emissions prices are dropping this morning, possibly pressured by the late news yesterday that Putin ordered to start filling EU gas storage from Nov.8th. The downward move might however be limited as, considering the current very high coal-to-gas switching levels, the gas prices needs to be much lower to shift the gas power plants back ahead the coal ones in the merit order.
Pressured by the bearish gas market, the power prices extended losses along the curve yesterday.
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