On Thursday 29 February, the European Commission published its reports on the European electricity and gas markets for the third quarter of 2023, indicating that the markets have recovered from the high price levels of 2022, although gas markets remain volatile.
The report on gas markets shows that the downward trend in wholesale prices stopped in this volatile environment, while the report on electricity markets highlights a continued fall in wholesale prices and a growing share of renewable energy.
Report on gas markets
In the third quarter of 2023, EU gas consumption and production continued to fall, with total consumption amounting to 56 billion m3, 14% down on the previous quarter and 7% down on the same period in 2022.
EU domestic production, meanwhile, fell by 18% compared with 2022, to 9 billion m3.
Imports were down 17% on the previous year, with pipeline imports down 19% and LNG imports down 6%.
Russia remained a major supplier, with 11 billion m3 of imports between July and September 2023, or 16% of the EU’s total gas imports. However, this represents a fall of 18% compared with the same period in 2022.
Wholesale gas prices in Europe displayed high volatility. The downward trend in prices stopped, with prices fluctuating between €30 and €40/MWh, with a quarterly average of €33/MWh, which is 5% less than in the previous quarter and 83% less than in the third quarter of 2022.
Report on electricity markets
The European electricity benchmark averaged €85/MWh, down 74% on the previous year.
Virtually all EU countries experienced a decline in prices, with the largest declines in Finland and France (-80%), followed by Denmark (-77%).
Electricity consumption fell by 4% compared with 2022, and the share of electricity generated by renewable energy reached 46%, compared with 37% for the same period the previous year.
Wind and solar power production increased by 21%, while fossil fuel production fell by 23%. Nuclear power generation increased by 7%.
The fall in wholesale prices eased the pressure on household retail prices in European capitals, which fell by 16%. In particular, a record number of hours with negative wholesale prices were observed.
In addition, registrations of electric vehicles in the EU jumped by 36% compared with the third quarter of 2022.
To see the reports: https://aeur.eu/f/b3t ; https://aeur.eu/f/b3u (Original version in French by Pauline Denys)