Energy market summary

The quarter started with year-ahead prices at a 28 month high of 60euros per MWh following the earthquake in Japan. However, these swiftly began to drop, with the opening summer months experiencing volatility throughout. Despite a sharp ascent towards the end of the period – in line with rising gas rates – June saw prices drop to a quarter-low before entering the second half of the calendar year.

Comments from the last 3 months

A: Downward pressure from coal and gas prices forced a steep decline in the power curve during the first half of April. However, this was quickly contrasted by strong gas-led gains in the latter half of the month.

B: Substantial losses from coal triggered another decline in the power curve at the start of the month. Minor fluctuations continued throughout May with only Germany’s decision to shut seven of its nuclear power stations offering any genuine upward direction.

C: A strengthening gas systems triggered notable gains along the curve during the middle of the month. Nonetheless, a drop off in carbon prices forced the curve down to its lowest point within the three-month period.