The power spot prices plunged in northwestern Europe yesterday amid forecasts of surging wind output, stronger solar generation, slightly improved French nuclear production and weaker power demand. The day-ahead price hence dropped to their lowest level since mid-June at 42.62€/MWh on average in Germany, France, Belgium and the Netherlands, -29.65€/MWh day-on-day.
Ignoring the potential pressure from the fortnightly UK carbon allowances auction, the EUAs rose by 0.93€/t (+1.8%) to 53.84€/t yesterday in an upward move attributed to the stronger gas prices strengthening the coal for the more emitting coal-fired power plants, an above-average demand in the morning Polish auction and a bullish sentiment spurred by the halved auction supply coming in August.
Meanwhile, the Commitment of traders data showed that the Investment funds reduced their net position on ICE by a significant 12.7% last week while the Other financial institutions cut their length 5.50%.
Lifted by the higher gas and carbon prices, the power prices posted hefty gains along the curve on Wednesday.
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