EUAs and power prices retreated after an early rebound

The European power spot prices were mixed yesterday, up in Germany on forecasts of dropping wind output, slightly down in France and Belgium likely due to the weaker clean fuels costs and steady in the Netherlands, torn between both. The day-ahead prices hence reached 98.28€/MWh on average, +0.49€/MWh day-on-day due to Germany observing a 9.60€/MWh daily increase.

After a rebound and subsequent bullish morning that brought EUAs up to 54.99€/t, the carbon prices fell back over the afternoon as data from the EU Transition Log showed that the European Commission appeared to have started handing out the long-awaited free allowances, despite the volumes distributed being overall in line with the market’s expectations and it remained unclear if any permit transfers actually took place. Some market participants also attributed the carbon prices’ late losses to a drop in gas and oil prices and further profit taking.

Meanwhile, the power prices tracked the early upward move of the gas and emissions markets and the following retreat to eventually post rather hefty daily losses along the curve.