Rain on the horizon

Focus week 37: The electricity price for the immediate future has fallen substantially, however there could be a bubble ahead for the fuel markets.

Here and now

The system contracts for the immediate period have fallen fairly substantially in the last week. The contract for October this year has fallen by just over 8%, and the Q4 contract has dropped by around 6%. The coming year contract, however, has fallen only by just over 1%. This must be viewed in light of the German year contract for 2019 having climbed by more than 13% during the same period. The explanation for this can predominantly be found in the fact that the weather forecasts have become much wetter in the last week, and the fact that the hydro-balance forecast has therefore experienced a significant upward adjustment.

Read Focus here.