European forward power contracts rebounded mid-October with EU Allowance carbon prices rallying after the UK and EU agreed a Brexit deal October 17. German year-ahead power, which hit a four-month-low of Eur46/MWh early October, recovered Eur2/MWh to trade above Eur48/MWh before the deal was clinched in Brussels, and as CO2 prices climbed over 10% within days to Eur26/mt. As PiE went to press Europe’s benchmark power contract was at Eur48.39/MWh. Spot power prices, meanwhile, were largely bearish amid still cheap gas spot prices (despite their own mini-rally), strong wind generation and mild temperatures. By October 18 both CO2 and power prices had eased as reality dawned that the Brexit deal would have a tough time getting through the UK parliament.
展开▼
