In 2024, several key trends emerged in European energy markets:
- Electricity prices: Yearly average electricity prices in major European markets were the lowest since 2021, with many markets seeing prices below €80/MWh. This decline may have been influenced by factors like increased renewable energy generation and lower fuel prices.
- Solar energy: Solar photovoltaic (PV) energy production reached record levels across all major European electricity markets in 2024. This increase in solar output likely contributed to the overall lower electricity prices due to higher supply from renewable sources.
- Wind energy in Portugal: Wind energy production in Portugal saw its highest levels ever in 2024. This likely provided a significant boost to the country’s renewable energy generation, enhancing energy security and supporting the renewable transition.
- Electricity demand: Electricity demand in 2024 was higher than in 2023 across most major European electricity markets. This could reflect factors such as economic growth, colder weather, or a recovery in industrial activity following previous years’ disruptions.
- Gas prices: The yearly average price of TTF (Title Transfer Facility) gas futures in the ICE market for the Front Month was the lowest since 2021. This decline in gas prices may have been driven by a combination of high storage levels, increased liquefied natural gas (LNG) imports, and lower demand.
- Carbon emission allowances: The yearly average price of CO2 emission allowance futures in the EEX market for December saw a decrease compared to 2023. Lower carbon prices can impact the cost of carbon-intensive energy production, potentially influencing electricity prices and energy production choices.
- Oil prices: The average settlement price of Brent oil futures in the ICE market for the Front Month also declined in 2024. This could reflect a variety of global factors, including shifts in supply, demand, and market sentiment about the future direction of oil markets.
These trends reflect a complex interplay of renewable energy growth, fluctuating commodity prices, and evolving energy demand dynamics in Europe.
