Power prices hit fresh highs amid rising fuels and carbon prices

The power spot prices hedged down yesterday in northwestern Europe, weighed down by forecasts of slightly lower power demand and higher wind and solar productions. The day-ahead prices reached 124.72€/MWh on average in Germany, France, Belgium and the Netherlands, -2.96€/MWh day-on-day.

The carbon prices continued to mirror the gas market on Tuesday. The EUA Dec.21 hit the day’s high of 62.88€/t at the market open before quickly dropping back below 62€/t, but rebounded alongside the gas contracts later in the morning despite a disappointing auction result. If the gas market pursued its upward move to the end of the day, the EUAs retreated at the end of the session and the benchmark contract eventually closed at 61.99€/t, 32-cent below Monday’s settlement.

The rising fuels and carbon prices once again drove the power curve prices up yesterday, with most contracts reaching new highs despite a slight EUA-led correction at the end of the day.