Gas prices for the front of the forward curve fell by more than 5 EUR/MWh upon closing yesterday, triggered by reports of a ceasefire between Israel and Iran.
For power prices, short-run marginal costs for a gas-fired power plant (50% efficiency rate) based on the forward contracts for gas fell by more than 10 EUR/MWh for the front- quarter and nearly 7 EUR/MWh for the front- year.
Upon publishing of results yesterday from our daily forward run, prices all over Europe saw a steep day-on-day fall compared to our simulations from Monday evening. SRMC of gas directly impacts water values in the Nordic hydro power zones as well, resulting in Nordic prices following continental prices down.
