Last week, we discussed how power contracts fall sharply following a drop in commodity prices. In this week’s market report, we delve into the rising gas prices due to strikes at French LNG terminals and the discovery of cracks in a nuclear reactor.

Short term

Temperatures dropped last week in France which resulted in a decrease in power demand. Furthermore, there was more wind and solar generation in both The Netherlands and Germany compared to the prior week. The Dutch spot price averaged last week at 122,2 €/MWh.

French protestors took to the streets to rally against president Macron’s pensions plans which caused many industries to (partially) shut down. Multiple LNG tankers had to divert to the United Kingdom as French LNG terminals as operations were halted. The power industry also took hits: multiple plants were unavailable and the country had to rely on imports from neighbouring countries. Moreover, EDF announced that it found corrosion cracks at one of its nuclear reactors during an inspection after which it was obliged to check for similar cracks at all of its nuclear reactors.

At the end of the working week gasprices increased significantly. April, May and June contracts for gas rose by almost 8 euros and settled close to 53 €/MWh. CO2 also took off: it increased by 7,5 euros and and cleared slightly below 100 euro at 99.8 €/EUA. Power contracts for the coming months thus increased in prices. April cleared 14 euros higher at 125,1 €/MWh and May settled 22 euros higher at 136,3 €/MWh.

Electricity (€/MWh)

Gas (€/MWh)

Note: Gas prices are listed in €/MWh (100 €/MWh is equal to 0.97694 €/Nm3, based on a conversion formula/factor 35.17 / 3600 = 0.0097694).

Long term

Next year’s gas and CO2 prices also increased significantly. Gas settled 6,4 euros higher at 57,5 €/MWh and CO2 closed almost 8 euros higher and settled at 104,8 €/EUA. The Dutch CAL-24 power contract increased in response to the increase in commodity prices and settled at 146,7 €/MWh, up 20 euros compared to the prior week.

The CSS for next year increased by almost 5 euros but settled at a negative price of -0,6 €/EUA. The CDS rose by 12,4 euros and cleared at 7,1 €/MWh.

Weekly changes

Base (€/MWh)

Peak (€/MWh)

Gas (€/MWh)

Let op: de gasprijzen worden vermeld in €/MWh (100 €/MWh is 0,97694 €/Nm3, gebaseerd op een omrekenformule/factor 35,17 / 3600 = 0,0097694).

CO2 (€/EUA)

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