The European power spot prices edged up yesterday, supported by the rising fuels and carbon prices, the lingering wind shortage and the solar production expected dampened by the partial eclipse today, although the above-average temperatures continued to weigh on the market and limited the gains. The day-ahead contracts reached 78.56€/MWh on average in Germany, France, Belgium and the Netherlands, +2.30€/MWh day-on-day and a few cent above the clean gas costs for 50% efficiency gas power plants.
The EUAs temporarily climbed above 54€/t on Tuesday, supported by the surging gas and coal prices, the low renewable production, a strong Polish auction result and bullish technical signals with the Dec.21 contract breaking above technical resistances.
The combination of sharply rising fuels and emissions prices lifted once again the power prices which posted hefty gains along the curve for a third consecutive day, with the short-term contracts observing the largest increase due to the stronger gains of the underlying gas contracts and additional bullish pressure from the hot weather prospects.
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