EUAs and power prices posted slight losses on retreating gas market

The European power spot prices were mixed yesterday, up in France, Belgium and the Netherlands on expectations of weak wind production and strong demand, but up in Germany amid forecasts of slightly higher wind generation with possibly some pressure from the lower clean fuels costs. The day-ahead contracts hence averaged 152.50€/MWh in the four countries, +2.92€/MWh dod and -15.34€/MWh wow.

After peaking at 61.40€/t at the market open, the EUAs progressively faded towards 60€/t throughout Tuesday alongside the waning gas prices with low volatility as most traders were waiting for the quarterly carbon allowances options to expire today before making a move in either direction. Despite a few temporary drops below, the 60€/t level held and the EUA Dec.21 eventually settled at 60.16, -0.52€/t day-on-day.

The retreating gas and emissions prices unsurprisingly weighed on the power curve prices as well, with the largest losses recorded by the near-dated contracts. Meanwhile, the outage at the 2GW UK-France IFA 1 power interconnector has been extended by four weeks, with the return of one 1GW bi-pole delayed to October 23rd. The return of the second one is still planned for March 27th.