Carbon prices hit fresh highs
13 April 2021
Spot and day ahead prices closed up as temperatures remained well below normal.As the UK gas system struggled to balance on Monday, prompt gas prices recorded big gains on the day. Wind generation levels below 2GW saw gas-fired power demand push overall demand above 300MCM. An early deficit of 30MCM was cut to 5MCM by close of business but prompt gas prices retained most of the big gains incurred early morning. Spot and day ahead prices closed at 55.25p, up 5.90p and 4.80p respectively as temperatures remained well below normal. The front month led the futures market higher with a gain of 2.28p and prices for the coming 12 months were up by an average of 2.00p.
GB baseload power futures recorded substantial gains on Monday as gas and carbon prices stepped higher on the day. Near futures gas prices gained almost 5% while carbon prices reached new highs with EU ETS unit prices finishing in a range between €44.40 and €45.40 per tonne. Yesterday’s gains reversed losses incurred towards the end of last week. The day ahead price jumped by £14.00/MWh or 20% day-on-day with tight margins and cold weather still prevailing in Britain. The more immediate cause of the step higher however was the current weakness in wind generation which is forecast to fall below 1GW today.
GB baseload power futures recorded substantial gains