Oct-21 Energy Market News

Record-shattering wind, Q1-26 swaps and caps trading tell a story, plus fresh coal-plant hiccups impact prices and risk. At times renewables are crashing prices, but volatility is flexing and premiums are being paid while potential volatility prevails.

Recapping 2025, market sentiment shifted downward with falling Cal-26 and Q1-26 forward prices. Trading activity increased from 2024 levels, although was less than previous years. Swaps have become less popular while Options and Caps grew. Put Options increased rapidly in some Regions.

The forth coming summer will be the next pivotal point in the market. Perceptions of the risk have softened and the Q1 quarter price has heavily traded down. Will summer bite and short players get sunburnt, or will Cal-26 and onwards reflect a lower risk premia?