During the third week of October, European electricity markets faced significant price fluctuations, driven by a decrease in renewable energy production and an increase in demand. These variables influenced the increase in average weekly prices in most of the continent’s electricity markets.
In particular, photovoltaic solar production showed a significant increase in the Iberian Peninsula, with a notable 11% increase in Spain. However, other countries such as Italy, France, and Germany experienced declines in solar production, with Italy showing the most marked decrease at 31%. On the other hand, wind energy production also suffered significant decreases, especially in Italy, which saw a 50% reduction, followed by Portugal and Germany.
Electricity demand reflected certain changes by country. While the Netherlands, Great Britain, and Italy saw an increase in demand, it decreased in Germany, France, and Portugal. Temperatures played a crucial role in these variations, showing increases in much of Europe, except for Spain and Germany, where slight decreases were recorded.
In terms of prices, most countries experienced increases during the week, although the UK and Nordic countries were the exception with slight decreases. Italy and Portugal stood out for their significant increases, reaching average weekly prices higher than those of other markets. However, on Sunday, October 20, a decrease in demand and an increase in renewable production at certain times resulted in negative hourly prices in certain markets.
On the other hand, fuel markets also showed downward trends. Brent oil futures started the week with high prices but declined influenced by downward revisions in demand forecasts from entities such as OPEC. TTF gas futures also decreased, despite starting the week on the rise, partly due to the abundant supply of liquefied natural gas.
Finally, CO2 emission rights futures presented fluctuations, reaching a peak at the beginning of the week and then decreasing, although remaining higher than previous weeks’ averages.
Within this framework, the analysis by AleaSoft Energy Forecasting, in collaboration with Deloitte, highlights the growing importance of batteries and hybridization in the renewable sector. These topics will be further discussed in an upcoming webinar scheduled for November, where opportunities and developments in energy storage and battery projects in Europe will be addressed.
Referrer: MiMub in Spanish