An article published in 3e-news notes that the value of emission allowances in Europe continues its upward trend. Five days ago the futures for December reached 50 euros per ton, more than doubling compared to the level before the coronavirus pandemic. On Monday, May 10, emission allowances price is 51.82 euros per ton.
Since December last year, CO2 emission prices have been on an upward trend making large consumers energy-intensive industries very concerned. Analysts note the need for an effective strategy of consumers to use alternative sources of electricity. They see such an opportunity in the use of renewable energy sources (RES), but emphasize the role of Power Purchase Agreements (PPAs), which are necessary to secure investments in RES. For now, however, a large proportion of consumers do not seem ready for this, especially in the energy-intensive industries. The high price of emissions makes the electricity market difficult to predict and risky.
In this setting, the rising price of TTF’s natural gas is also a concern. The surge in the spot price of gas, started in mid-January, is increasingly worrying participants. On the last business day of April, according to ICE, the price of TTF futures for June was at the level of 23.3 euros per MWh. In the early afternoon of May 10, the price of TTF is already at the level of 25.0 euros per MWh.
On the other hand, the inventory levels of European underground gas storage facilities remains low, although according to GIE data, a more stable level of injection is already observed. In general, for a gas day of May 3, the storage level of European gas storage facilities is 341.2 TWh. Specifically, for Bulgaria, the data show that the level is already growing to 0.85 TWh.