CO2 emission right, LNG spot market and wholesale prices all rising

A series of energy exchange price rises over the past few days has increased electricity production costs, a development expected to impact wholesale prices both in Greece and abroad.

A rise in natural gas price rises, particularly LNG spot markets, ranks as the sector’s biggest price-related development. This rise was prompted by price hikes at the British and Dutch gas hubs following reduced inflow from the Norwegian pipeline.

Higher European prices have also led to LNG price increases in Asia, up by 10 cents to 4.5 dollars per MMBTU for orders to be delivered in May.

Even so, it should be noted that LNG prices have remained below the 5-dollar level, an all-time low.

Many companies and production terminals have begun maintenance work at facilities now that the winter season has passed.

Besides natural gas prices, CO2 emission rights have once again hit an upward trajectory. Last week, price levels exceeded the 24-euro per ton level, reaching 24.53 euros per ton on Friday, but eased slightly yesterday to 24.25 euros per ton. Industrial enterprises are stocking up on CO2 emission rights, fearing a further escalation in prices.

CO2 emission right prices last dropped to below 20 euros per ton on February 26 before exceeding this benchmark throughout March, the month’s peak being 23.18 euros per ton.

These developments are expected to impact wholesale electricity prices. The average System Marginal Price (SMP) in Greece was 69 euros per MWh in February and remained at elevated levels in March. The SMP level reached 71.6 euros per MWh last Friday but has eased to less than 70 euros over the past couple of days, according to day-ahead market data.