Also in February, energy prices confirm the upward trend compared to 2020. CO2 continues its run reaching a new record level, mainly thanks to the action of hedge funds. Hydroelectric also remains at excellent levels, while wind slows down and gas stabilizes due to the return of seasonal averages.
After hitting historical lows in 2020, in the new year the market marks a clear reversal of the trend, thanks to the optimism generated by the vaccine. In addition, the low temperatures recorded and the phenomenon of Cargo Reversion between Asia and Europe could contribute to the restart of energy prices. With regard to renewable production, hydroelectric and wind power have recorded new records in the levels of injection into the grid.
In November, the electricity market trend reflects, although to a limited extent, the optimism generated by news of a possible Covid-19 vaccine. Renewable production, however, decreased significantly, particularly generation from wind power. Futures show a significant increase, due to cold weather on the way.
In October, the recovery in the energy price seen in previous months was interrupted. Generally speaking, the current period is marked by a climate of uncertainty on the markets, above all due to Covid-19 and the American elections. In Italy, there was an increase in #renewable production, particularly #hydroelectric production, which impacted on prices. Calendar 21 forecasts for next year show a loss. To find out more on consumption, production and price trends, download our report!
In September, France recovered nuclear availability, guaranteeing refuelling in the winter months. Consumption levels continued to recover, while #renewableproduction recorded a drop, leading to a peak in prices on European #power markets. Prices of #gas and #CO2 continue to rise. The EU has declared that it wants to further reduce emissions targets by 2030.
The electricity market is heavily influenced by sector-specific endogenous factors and exogenous events that inevitably affect trends. The Covid-19 pandemic, for example, has heavily impacted the energy market, creating great uncertainty and instability, and only now showing signs of recovery.
The impact of Covid-19 on the European electricity market is lessening, although energy consumption continues to drop compared to 2019 figures. CO2, on the other hand, continues to rise, driving up power prices for 2021, which have returned to pre-pandemic levels. Renewable production continues to remain stable at excellent levels.