In the third week of January, electricity markets in Europe experienced a significant increase in electricity prices, driven by a combination of climatic and economic factors. This increase occurred in a context of decreased wind production and an increase in energy demand, caused by colder temperatures in several regions. Additionally, gas and carbon dioxide (CO2) prices also contributed to this increase, highlighting that on January 17th, CO2 futures reached their highest closing level since late May, reflecting the pressure on energy markets.
Despite this situation in the electricity market, solar photovoltaic energy production recorded record figures in several countries, including Spain, Portugal, and France. In particular, the Portuguese market experienced an impressive 87% increase in production compared to the previous week. Germany, Spain, and France also reported significant increases in their solar production, at 41%, 58%, and 61%, respectively. This increase in photovoltaics contrasts with the decline in wind production observed in all European markets, with France being the most affected country with a 69% decrease, while Italy showed the smallest drop at 19%.
On the other hand, electricity demand also showed an upward trend in most European markets. France stood out with a 15% increase compared to the previous week, while Belgium reported a slight increase of 1%. The lower temperatures, ranging from 1.7°C in Belgium to 5.4°C in Spain, drove the need for heating and, consequently, electricity consumption.
Price figures in electricity markets reflect these dynamics, with most average prices exceeding 130 €/MWh. A notable exception was the Nordic market, which maintained an average of 21.25 €/MWh. Among the increases, the EPEX SPOT market in Germany led with an impressive 63% increase.
In the realm of fuels, Brent oil futures prices also showed an upward trend, surpassing $80/bbl on several days of the week. This situation is attributed to concerns about supply stemming from sanctions on producing countries like Russia, Iran, and Venezuela. Similarly, TTF gas futures increased, reaching 48.26 €/MWh, before experiencing a slight decline towards the end of the week.
Projections from analyst AleaSoft Energy Forecasting suggest that the next week could see an increase in wind production in markets like France, Germany, and Spain. However, decreases in solar generation and demand are also anticipated in several European markets. This scenario underscores the complexity and volatility of the European energy market, factors that will be crucial for its evolution in the near future.
via: MiMub in Spanish
