04 August 2021

Market Price Assessment – PPA , GPA and Carbon Markets 4th August 2021

Carbon Markets :

  • UK Allowances (UKAs) were up after a brief period of weaker pricing.
  • Liquidity is improving with increased UKAs trading on a forward basis.
  • Both UKA and EUA prices to continue to rise into Q4 of 2021 on the back of rising power prices, liquidity constraints and supply-demand imbalances.

Gas and Power :

  • Gas and power markets are still supported by strong market fundamentals.
  • This week has seen some price consolidation.
  • On the spot market power was stable to slightly lower on expected increased wind generation.
  • We expect gas pricing to remain bullish as the fundamentals continue to be tight.