Lots of wind, little solar and abundant precipitation

Last week, there was an above-average amount of wind in both the Netherlands and Germany. However, there was a limited amount of solar generation, especially in Germany. Additionally, there was substantial precipitation, causing the water levels in the Rhine to rise significantly. A few weeks ago, the water levels had severely dropped, raising concerns about potential disruptions in the transportation of commodities. Over the weekend, wind and solar generation increased significantly in both countries. The average weekly spot price of power in The Netherlands was ultimately 79.1 €/MWh, similar to the previous week.
Gas prices slightly declined last week. The contract for August closed approximately 2.5 euros lower at 25.8 €/MWh, while September closed almost 3 euros lower at 26.9 €/MWh.
CO2 also fell. The December 2023 contract decreased by almost 3 euros, closing at 88.7 €/EUA.
Due to the decline in gas and CO2 prices, the Dutch power forwards for the coming months became cheaper. August and September contracts decreased by an average of 7 euros, reaching 72.7 and 81.5 €/MWh, respectively. The clean spark spread for August worsened by nearly 1.5 euros, ending the week at -8 €/MWh.

For 2024, gas became slightly cheaper, decreasing by approximately 2 euros to 50 €/MWh. The CO2 contract for next year dropped by 3 euros, closing at 93.1 €/EUA. The coal contract remained relatively stable.
The Dutch power contract for 2024 lost 3 euros, closing at 127 €/MWh. The spark spread improved by just under 2 euros but remains negative at -1.7 €/MWh. The dark spread decreased by 50 cents but remained positive at 5 €/MWh.

Weekly changes