Strong gas pushes EU power curves higher, spot plunges on mild and windy weather

Spot power prices were sharply down in NW Europe on Tuesday on expectations of a jump in German wind power generation from 6.5 GW on Tuesday to 24 GW on Thursday (see graph of the day) and the continuation of below-average temperatures for the coming week. Overall, day-ahead prices for today reached 72.27€/MWh on average in Germany, France, Belgium and the Netherlands, down 13.68€/MWh day-on-day. On the curve, strong gas prices on the back of low storage levels and limited LNG supply pushed most power contracts higher. EUA prices traded as high as €53.78/t intraday but finally fell towards the close.

EUA prices could remain rangebound today as fundamentals are mixed with reduced auction supply but free allocations starting to be delivered to industrial players in August, notably in Germany and the Netherlands. The result of the bi-weekly UKA auction at 14:00 UK time could provide some direction. Overall, the EUA Dec 21 contract could find some technical resistance on its 20-day moving average in the very short term. Steady gas prices should continue to be supportive for power curve prices.

germany wind power genearation
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

October 25, 2021

Mixed price evolution

European gas prices were mixed on Friday. Spot prices were slightly up, supported by below-normal temperatures. By contrast, curve prices were slightly down as the…
October 25, 2021

New Covid outbreak in China

While real estate is already expected to weigh negatively on the growth of the Chinese economy in Q4, a new wave of the variant delta epidemic is affecting 11…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!