Weekly Energy Market Highlights:
- Electricity markets continued their upward trends last week on the back of bad news on the weather front regarding the delivery of Russian gas to Europe or even the output of the nuclear power plant in France.
- TTF Y+1 gas price reached a new high at 200 EUR/MWh last week. With the gas price at 200 EUR/MWh, the electricity market price is now at 400-500 EUR/MWh for the next year supply, as was anticipated in the prior article.
- LNG gas supply to Europe is still strong, with gas storage capacities reaching 74% this week. Germany’s gas storage facilities have reached a fill level of 75%, two weeks ahead of schedule. The next goal is to fill storage to 85% by the 1st of Oct.
- Moody’s changed Italy’s economic outlook from “stable” to “negative”, driven by an increased risk that energy supply challenges would weaken the economic prospects. The energy demand in Europe has already started to decrease in 2022 on the back of higher prices.
- Overall, not many factors indicate an improvement in power price between now and the start of the winter. Most market Experts believe that power prices will continue to increase between now and the beginning of winter 2022-23.
To read the prior week’s European Energy Market Update, please follow the link here.
