Emissions Trading / Carbon Market News (2019-02-01)

Dear Sir or Madam,

In the past year, the most important North German network operator exceeded for the first time the billions in terms of the costs that were necessary to ensure grid stability. Tennet estimates the costs, which ultimately end up on the electricity bills of end consumers in Germany, at 1.03 billion euros. In 2017, it had also been close to one billion euros due to the windy weather. In 2016, the amount of 660 million euros was still significantly lower due to less wind. In 2015, Tennet reported 710 million euros. Together with the other network operators, the cost of network stabilization in 2017 was 1.4 billion euros. It can be assumed that this amount was not undercut in the past year either. It is therefore right and important that the German Minister for Economic Affairs and Energy, Peter Altmeier, wants to promote the development of power lines as quickly as possible.

Last Friday, the first German auction was held this year, in which 3,209,000 EUAs were auctioned at the EEX in Leipzig. A total of 15,122,500 EUAs were auctioned last week. Compared to the previous week, in which only the auctions of the EU were carried out and thus only 7,485,000 new EUAs came on the market, this was a doubling, which has put the prices of European emission rights under pressure. On a weekly basis, these lost 8.2% and closed at 21.80 euros on the spot market. There will be no Polish auction this week, which means that the auction volume will be lower again with a total of 10,694,000 EUA. The Polish auction always takes place every two weeks and usually includes 4,428,500 EUAs in a primary market auction.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-25 2019-02-01 Change
EUA (Spotmarket) 23.76 EUR 21.80 EUR -1.96 EUR
EUA (December-2019-Future) 23.93 EUR 21.99 EUR -1.94 EUR
CER (Spotmarket) 0.24 EUR 0.23 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 61.66 USD 62.74 USD +1.08 USD
EURO (Currency, Forex) 1.1404 USD 1.1455 USD +0.0051 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

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With kind regards,

Advantag Services GmbH