We are still not out of the Covid-19 pandemic , but as vaccination programmes appear to be slowing the virus , at least in Europe , commodity markets are soaring . Post-Covid optimism , a carbon rally , and strong Asian demand have seen energy markets hit multi-year highs in Europe , with some market participants left scratching their heads .
In this issue , we look at the controversial proposal about to be put forward by the European Commission to keep industry in the 27-nation bloc competitive , especially from imports of goods manufactured in areas with a less stringent environmental framework .
Spain has seen a boom in renewable power purchase agreements over the past year . We look at developments in the country – rich in solar resources – and investigate how many projects in the current pipeline will actually come online . Has the flurry of wind and solar deals been a victim of their own success ?
The post-Brexit decoupling of UK spot prices has raised questions over liquidity , price divergence and market efficiency but the exchanges say they are looking at new arrangements to solve the current issues . We also speak to Ice about plans to link the UK ’ s emissions trading scheme with the EU ETS .
Due mainly to grid congestion , the Nordic region is composed of several price zones . Power market participants have long complained about the impact of these on their ability to hedge price risk . We look at ways to increase market efficiency and hedging opportunities .