The electricity price was lower this week, but was far from stable. Due to a number of days with lots of sun and wind, the electricity price was considerably lower for a few days. In addition, a lower gas price put pressure on the electricity market, although it seems to be a matter of time before this situation reverses.
The electricity market fluctuated sharply up and down this week. On Tuesday, September 19, the electricity price was at its lowest point since August 8, at €37,24. The electricity price was still low the next day, but then the electricity price rose to around €100. The price fell sharply over the weekend. On Sunday, September 24, the price fell relatively sharply, to €66,01. Monday's quotation seems to be a prelude to next week. On Monday, the electricity price was at the highest point of the week, at €103,88.
A relatively large percentage of virtually free solar and wind energy caused the drop in electricity prices this week. Stronger winds in particular led to lower electricity prices. In total, 32,7% of all electricity was generated by wind turbines. In addition, late summer provides relatively much solar power. Solar collectors accounted for 14,9% of the electricity demand. In total, approximately 47,6% of all electricity was generated virtually free.
Due to the large yields from renewable electricity, just over a third of Dutch electricity was generated by gas-fired power stations. This was reinforced by a relatively favorable position of the TTF. Last week, governments managed to keep gas prices down by temporarily stopping the filling of stocks.
Gas price is leading
Meanwhile, higher gas prices appear to be an indication of higher electricity prices next week. Governments can no longer get away with stopping filling and this is reflected in the price. Now that gas reserves are being replenished, the market seems to be responding extra strongly to the scarcity. Since Tuesday, September 19, the gas price increased by 13% from €37,78 to €43,50. This means that the gas price is at its highest point in about 5 months.
Strikes in the Australian LNG sector gripped the European gas market for weeks. This soap opera finally came to an end on Friday, September 22. On that day, the Australian unions decided to end the strikes at producer Chevron. Despite these developments down below should have a price-depressing effect, the gas price actually rose. This is mainly for two reasons. Firstly, Norwegian gas operator Gassco has extended the period of work on the Skarv field. According to the plan, the gas field will be out of operation until October 2, but this deadline has been postponed to October 8. In addition, less gas is coming in from the largest LNG plant in the United States. Analysts who keep a close eye on exports to mainland Europe fear that this could cause gas prices to rise.