EUAs fell on weak results from the first auction of the year

The European power spot prices for today climbed back above the clean gas and coal costs, lifted by forecasts of a weak renewable production and lower temperatures (although increasing) temperatures.

Prices hence reached 57.23€/MWh on average in Germany, France, Belgium and the Netherlands, +8.39€/MWh from Friday.

The temperatures nearly 6°C above normal curbed the French power consumption on Friday which faded by 3.73GW to 62.05GW on average. The nuclear generation waned as well to reach 46.27GW, -2.03GW dod. The German wind generation however temporary surged to average 23.39GW, +11.63GW from Thursday, but quickly eased below 10GW over the weekend.

EUAs fell by 1.00€/t over the last session of the week, mainly weighed by the auction resumption with additional pressure from the weaker energy complex and fading equities. The German spot auction, the first sale of the fourth phase of the EU ETS, cleared with a hefty 0.27€/t discount to the secondary market and a weak 1.59 cover ratio (to compare with, the bid coverage averaged 1.76 in 2020), which pushed carbon prices down throughout the day. This year’s sales are however particular since compliance companies will not be allowed to surrender Phase 4 allowances (bought through auctions or allocated from 2021) for their emissions of 2020 in April. As a consequence, the market’s two exchanges ICE and EEX introduced on Friday independent futures for Phase 4 allowances which will be traded in parallel of the phase 3 contracts until April.

eua-prices-equities-01
Share this news :

You might also read :

ES-power
September 6, 2021

EUAs climbed to new intraday all-time high

Supported by forecasts of a wind shortage and the record clean fuel costs, the European power spot prices climbed above 120€/MWh for today to reach…
EnergyScan, webinar, ENGIE, ENGIE Gems, Macro, Oil, Gas, Power, Carbon
January 18, 2023

Is the peak of the energy crisis behind us?

The EnergyScan team held its quarterly webinar covering key trends and events on energy markets. In this webinar, our experts addressed the following topics, with…
ES-economy
June 3, 2021

Let’s wait for the US job report

The market seems on hold, but remains confident overall: limited gains in equities and bond yields slightly down. The USD is rather stable too: the…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter
Thank you for subscribing to our newsletter​

We will get back in touch with you soon.

Don’t forget to follow us on twitter!

EnergyScan - Newsletter subscription

Don’t have an account yet? 

[booked-calendar]