Major new price jump in allowance market

Focus week 26: The carbon emissions allowance price continued to climb last week and has now recovered all losses from the coronavirus crisis. Nordic energy prices also experienced increases.

Here and now

During the last week, we have experienced diverse developments in the short-term and long-term contracts in the Nordic forward market. There were price falls in the short-term contracts as, during the course of the week, weather forecasts increasingly indicated that low pressure would be arriving towards the middle of this week. The long-term contracts in the market increased as a result of the uptrend in the carbon emissions allowance market and the German energy market. The Q3-20 contract fell by EUR 0.40/MWh to EUR 12.50/MWh, while the YR-21 contract climbed by EUR 1.15/MWh to EUR 24.75/MWh.

Read Focus here.