EUAs climbed to new 2022 high on bullish equities

The surging wind production continued to pressure the European power spot prices yesterday, with the German price presenting the largest losses by falling by 114.27€/MWh from the previous day. The day-ahead prices averaged 195.80€/MWh in Germany, France, Belgium and the Netherlands, -44.01€/MWh day-on-day.

The EUAs jumped by more than 2€/t in the first hours of trading and hit a 7-week high at 90.00€/t in the afternoon yesterday, closely tracking the early but sharp rebound of European equities while the firmer gas prices provided additional support. The carbon prices however slightly eased back at the end of the session as the European financial market retreated and the EUA Dec.22 eventually closed at 88.66€/t, +1.21€/t from Tuesday’s settlement. We could see further downside today as the emissions prices continue to follow now bearish financial markets following yesterday’s announcement from the Fed (see our news for more details), although the near 5-day moving average (at 86.57€/t at the time of writing) might cap the losses.

After a bearish opening, the power forward prices recovered throughout Wednesday with support from the rising gas and carbon prices, but the short-term prices failed to erode all of their early losses.