In October 2024, electricity prices across most major European markets saw increases compared to September, with many monthly averages surpassing €65/MWh. The N2EX market in the United Kingdom and the EPEX SPOT markets in the Netherlands, Belgium, and France recorded their highest monthly prices since at least February, while prices in the MIBEL market (Spain and Portugal) and the IPEX market (Italy) saw declines compared to September, AleaSoft reports.
Solar photovoltaic (PV) generation reached record levels for October in Germany, Spain and Portugal, contributing to a surge in renewable energy production. Wind energy output also saw an uptick in Spain and Portugal, which helped reduce electricity prices in these regions.
Meanwhile, electricity demand rose in most European markets, compared to both the previous month and the same period last year, putting additional upward pressure on prices in several regions.
On the commodities front, TTF gas futures on the ICE market for the Front Month hit their highest average since December 2023, while Brent oil futures also rose compared to September prices. In contrast, CO2 emission allowance futures in the EEX market showed a decline for the December 2024 reference contract, continuing the trend of lower carbon prices.
This combination of price trends, weather-related renewable energy production boosts, and increased demand underscores the complexity and volatility of European energy markets heading into the final quarter of 2024, AleaSoft reports.
