A few words about Energy crisis 2022/23 Energy market prices have begun the new year considerably down as mild winter weather and global economic concerns weigh on the market. The situation is opposite to the one in 2022 when Russia’s invasion of Ukraine sparked fears about energy supply, sending prices skyrocketing. European natural gas has been […]

Why are electricity prices rising today? According to the Council of the European Union, the high cost of power and skyrocketing gas prices have demonstrated the insufficiency of the present market structure for electricity, primarily focused on the marginal cost of the most costly source, currently natural gas. This market structure was implemented to promote

Electricity Market Prices at a Glance The electricity market prices have been on the rise since 2021. The situation has significantly worsened following the war outbreak in Ukraine in Feb’22. As a result, electricity market prices have increased to unprecedented levels, with German Cal23 baseload future contract trading above 1.000 EUR/MWh. Since the end of

OECD Annual Inflation Reading

Energy Market Overview in Q3 2022 (Gazprom halts gas supplies to Europe) Over the past ten years, EU countries have become gradually more dependent on Russian gas. During this time, natural gas consumption in the EU was primarily unchanged. Meanwhile, output has decreased by two-thirds since 2010, and increased imports have supplied the resulting deficit.

European power prices rise since the post-covid recovery. The main reasons are: Post-Covid pandemic recovery China’s demand Low renewable production The war in Ukraine The war in Ukraine has obviously pushed gas and power market prices to a new historical high level never seen before. The market price volatility has also increased from 20-30% to

In the previous article, we have discussed 3 possible power market scenarios that can develop around Russian gas supplies to Europe: Low Case (probability 10%). A short-lived and small-scale invasion, with a limited number of casualties over a number of days. The diplomacy prevails and there are no sanctions evoked toward energy supplies from Russia. The

Why is Russian gas so crucial for Europe? Because of its North Sea gas production and LNG import infrastructure, the UK’s reliance on Russian gas is modest compared to most European countries, with less than 4% of the total supply. Furthermore, the UK has stated that it intends to diversify further away from Russian imports.

Why are gas prices in Europe so high? The European gas market without Russia is going to create a lot of uncertainties and power price volatility. Power prices can double, at least, vs. the historical market average. One of the reasons is Russia is Europe’s largest natural gas provider, supplying 33% of the region’s demand

The European Commission approved an Iberian exemption this week, allowing Spain and Portugal to limit gas prices for the next 12 months. The law is expected to be passed next week which should help to calm down the power market. The political accord allows for the construction of a temporary mechanism that will cap gas