EU carbon price down
https://x.com/rpieczarko/status/2021982204147204433?s=46
See this LinkedIn post:
The main driver of plunging German power prices is the significant drop in CO₂ prices.
This is due to political statements by Chancellor Friedrich Merz, who has suggested adjustments to, or at least a postponement of, the EU Emissions Trading System (EU ETS) to strengthen the competitiveness of industry.
The market is reacting sensitively: The EUA December 2026 contract has lost considerable value, thus intensifying the downward pressure on electricity prices. Traders are now openly speaking of a “political electricity market.” At the same time, the price declines are being somewhat limited by stable gas prices – partly due to depleted storage facilities and cooler temperatures. In the short term, weather-related factors are also having an effect: lower wind power generation and a slight increase in solar production.
What does this mean?
For anyone who hasn’t secured a long-term fixed price in the past, the current development is initially positive. Those who have remained flexible or procure electricity on a short-term basis benefit directly from falling futures and CO₂ prices.
At the same time, it’s also clear that energy prices remain highly sensitive from a political and regulatory perspective. Statements regarding the design of emissions trading can trigger significant market movements – with both opportunities and risks.
Conclusion:
– Short-term relief for spot and tranche buyers.
– In the long term, active procurement management remains crucial.
#ElectricityMarket #EnergyPrices #CO2 #EUETS #EnergyPolicy #Procurement #Industry #EnergyMarket #RiskManagement #eoptimum #eoptis
Carbon Pulse snip, above
CarrZee from a few days ago, below … Delbeke post might have eroded EU ambition at the wrong time
There is also uncertainty about clean energy tech
TWZ: The U.S. Navy’s top officer wants directed energy weapons to become the go-to choice for the crews of American warships when faced with close-in threats. He also said that more powerful megawatt-class lasers should not be seen as “beyond” the capabilities that could be found on the future Trumpclass warships. The Navy has been a leader within the U.S. military in fielding laser weapons and is actively pursuing systems that employ high-power microwaves, but there continue to be significant hurdles to these efforts.
