Power prices rise after rapid increase in gas and CO2 prices

Towards the end of last week, we saw temperatures rise in Northwestern Europe. The high-pressure area that had been lingering over the United Kingdom for some time, bringing in colder air in countries like the Netherlands, moved towards Scandinavia. In France, we observed a slight increase in power demand due to higher temperatures and the increased use of air conditioning. Nevertheless, the temperatures in France were not extremely high for this time of year.
Overall, the average Dutch spot price was 74.2 €/MWh last week. This was partly due to the increase in gas and CO2 prices. The gas price rose significantly, and the contract for July closed almost 8 euros higher at 32 €/MWh. August closed at 32.8 €/MWh. The increase was reportedly partly caused by increased demand from Asia. CO2 increased by almost 8 euros and settled at 86,8 €/EUA. The price of coal also went up, which implies that the difference in production costs between gas and coal-fired power plants remains significant.
As a result of the rise in gas and other factors, the Dutch power prices for the upcoming months also increased sharply. July became over 20 euros more expensive, reaching 92.3 €/MWh. August became nearly 25 euros more expensive, closing the week at 98.3 €/MWh. The spark spreads for the same months also improved: the CSS for July was slightly positive, and the CSS for August ended just below 5 €/MWh.

Last week, Minister Rob Jetten announced that the construction of 1 half of the future IJmuiden Ver wind farm will experience delays. This wind farm initially consisted of four plots, but it was ultimately decided to split the wind farm into two plots, each with a capacity of 2 GW: Alpha and Beta. The construction time for the plots is now estimated to be between six and seven years, with completion expected in 2029.
For 2024, gas and CO2 also became significantly more expensive. CO2 increased by over 8 euros and closed the week at 91.1 €/EUA. Gas rose by just under 4 euros and closed at 46.8 €/MWh. The Dutch electricity contract for next year increased by 16 euros and closed at 123.4 €/MWh.
The clean spark spread for next year increased by about 6 euros and was 1.5 €/MWh. The dark spread increased by a little over 4 euros and was 5.5 €/MWh.

Weekly changes