The decline in the electricity market continues. On Monday, October 24, the price continued to fall to its lowest level since late May. A warm and sunny late summer pushes the prices on the APEX-Spot downwards. Favorable yields from solar and wind energy and major savings on natural gas ensure the lowest electricity price since the end of May.
The month of October has so far been characterized by falling electricity prices, this week is no different. On Tuesday, October 18, the APEX-Spot was at a high of €166,12. After that, the price no longer exceeded €150. Towards the weekend the electricity price fell faster than usual. On Monday, October 24, a megawatt hour of electricity cost €77,91, the lowest point since May 28.
The falling prices on the Apex Spot are mainly the result of favorable weather. After last week's dip in renewable energy production, production picked up again this week because it is a lot sunnier than normal, which means a lot of solar energy is being generated. In addition, the wind was blowing hard again, which resulted in a lot of wind energy being produced. The large production of renewable energy puts pressure on the electricity price, but it is mainly the high autumn temperatures that cause prices to fall.
Due to the mild weather, heating in the Netherlands is set to a lower setting than in an average October. The demand for gas is therefore lagging considerably behind previous years. So far, European countries are saving 25% of their gas compared to 2021. Last week, gas consumption was often even 35% lower than in 2021. This saves a lot of money on drinks, since about half of Dutch electricity comes from gas. cheerful.
For the time being, it appears that demand for gas remains low. According to meteorologists, temperatures will also remain higher than average this winter. The fear of large-scale shortages seems to have been averted for this winter. Due to major savings, Europe will most likely have enough gas to get through this winter.
Oil market calms down
Prices on the oil market also contribute to low electricity prices. After a turbulent period, the oil market is calming down somewhat. Oil prices were in rough waters for most of October. This is the result of a decrease in OPEC+'s production target. The oil cartel decided to cut oil production by 2 million barrels per day. After OPEC+'s intervention, the oil price rose sharply. According to some analysts, the price would rise to $110 per barrel, but due to the deteriorating economy and US countermeasures, the oil price never exceeded $98 per barrel. Today, October 24, the oil price fluctuates around $90.