Weekly European Power Prices Highlights:
- European power prices were extremely bullish this week, reaching new historical highs. German Cal23 Power Price increased by 25% W-o-W, fuelled by the fears that Russia might not restart the Nord Stream gas flows after the planned annual maintenance that will start on the 11th of July and until the 21st of July.
- Nevertheless, the gas stocks in Europe continued to recover to 60% capacity this week amid strong LNG deliveries.
- European coal prices have been bullish this week after as the EU is boosting coal purchasing to ensure it can still produce electricity when Russia completely halts its gas supply. Forecasts of hot weather from mid-July can lead to further spikes in spot coal prices in Europe.
- Outlook: The European energy system remains highly fragile with the upcoming winter period. Europe will likely see above the historical average power prices even if the War in Ukraine were to end today and even if there’s a recession. Therefore, European power prices can still double even from the current high level today before the upcoming winter of 2022.
To read the prior week’s European Energy Market Update, please follow the link here.