In the second week of October, an increase in wind production in Europe resulted in a significant decrease in electricity prices in various markets across the continent. During this period, some markets experienced negative prices, while others reached the highest levels seen since at least February. In Italy, daily photovoltaic solar energy reached a historic record for the month of October, highlighting the growing importance of renewable energies in the European energy mix. Gas futures, on the other hand, remained stable compared to the previous week.
On the other hand, solar generation showed variability. In Germany, photovoltaic production grew by 4.2% after weeks of decline. In contrast, Spain, Portugal, France, and Italy saw their numbers decrease, with Spain standing out with a 38% drop, while Italy reported a marginal reduction of 0.2%. However, Italy set a record of 89 GWh of daily production on October 11.
Regarding wind production, most European markets showed increases, led by Portugal with a 59% increase. Germany and Spain followed with growth rates of 45% and 32%, respectively. France was the only exception, maintaining a negative trend with a 1.4% decrease.
Electric demand experienced a general increase during the week of October 7, especially in Germany, which led with a 6.9% rise following the German Unity Day holiday. Demand also increased in France, the Netherlands, Belgium, Italy, and Great Britain. In contrast, the Iberian Peninsula recorded a decrease, partly due to Spain’s National Day.
Electric prices on the continent showed a decreasing trend, except for the United Kingdom, where they increased by 4.8%. The Nordic countries experienced the biggest decrease, while Portugal and the MIBEL market maintained significantly low prices, benefiting from abundant renewable energy production.
The energy situation in Europe was complicated by fluctuations in fuel prices. Brent oil reached a peak of $80.93/bbl early in the week, driven by geopolitical tensions and weather conditions, although prices later decreased. Despite this, concerns about supply stemming from the situation in the Middle East led to increases in TTF gas futures, often exceeding €40/MWh.
For the third week of October, an increase in prices is anticipated in European electricity markets, mainly due to an expected reduction in wind production and an increase in electricity demand. The economic and business community is vigilant of these changes, adjusting strategies to adapt to a constantly evolving energy market.
Source: MiMub in Spanish
