Strong downward pressure on gas spot prices led to intensive coal-to-gas switching across the EU in the first quarter of 2019, according to the European Commission's 28 June electricity market report.
Gas-fired generation reached a record volume of 148 TWh. The report confirms that the share of coal in the EU's power mix has continued to decline and, in March, reached its lowest level on record (13.3%).
The withdrawal of emission allowances from the market into the Market Stability Reserve, aimed at addressing the current surplus of allowances, began in January. However, uncertainty surrounding the Brexit issue was the main factor influencing CO2 prices during the quarter, the report explains.
Wholesale electricity prices fell across all EU markets in the first quarter of 2019, with the European Power Benchmark declining by 21% compared to the previous quarter thanks to mild weather conditions in February and March, lower energy commodity prices and good renewable output.
The renewable sector continued to increase its share in the power mix, reaching 31% in the reference quarter (mainly due to wind generation). (Original version in French by Lionel Changeur)