Strong Alberta power settles as winter storm rolls in

Alberta power settles were strong this week with a winter storm and colder weather and decreased thermal availability. The week averaged more than double the prior at $78.49/MWh, the balance of month is trading over $100/MWh. The forward curve is also trading up significantly – over $1.50/MWh through Cal-21. Volatility is attributed to strong settles and increased liquidity as 2020 is closed out.

Natural gas also saw a strong week of demand due to the cold weather. The price jumped 35% to $2.29/ GJ. The natural gas forward curve also increased week over week, again attributed to strong settles and the closing out of 2020.

Carbon emissions in 2020 dropped lower than during the 2008 financial crisis this year, as the world shut down to prevent the spread of COVID-19. Although emissions had returned to regular levels by July 2020, it suggests how emissions could continue to decrease in the future.