Electricity and Gas Market:
The Latest Trends

This week, prices are once again decoupled between the gas market and the electricity market.

Unlike gas, electricity prices declined across all maturities. The year 2029 benefited the most from this decrease, with -2.72 €/MWh on the Baseload product and -3.57 €/MWh on the Peakload product.

Prices for calendar products 2027, 2028, and 2029 are currently fairly close and closed the week between 49.4 €/MWh and 50.5 €/MWh for baseload.

We can currently observe a gradual disappearance of contango on the French electricity market, with long-term prices falling sharply and therefore catching up with 2027 prices.

While gas and coal prices were observed to be rising, this does not seem to impact electricity prices, which remain bearish. Indeed, the API coal contract reached its highest level in 5 months at $102.1/t.

Conversely, carbon prices reached their lowest level in 7 weeks after a 7% decrease over the week. Indeed, the EUA contract was observed at 82.63 €/t on Friday.

This certainly helped offset the effects of the two other drivers on electricity prices. In addition, forecasts of stronger winds are reassuring the market regarding wind power generation.