The weakening of winds in recent days has strengthened wholesale electricity prices at the Energy Exchange compared to the exceptionally low levels observed during the first half of August. From the ‘spring-like’ prices of €48-75 that dominated the early part of the month, prices have now risen closer to €90. However, the lack of wind has been accompanied by a drop in electricity demand, maintaining a balance that currently prevents prices from reaching the €100 mark—which was the average price in July.
Thus, for the first 19 days of August, the average wholesale electricity price stands at €72/MWh. Compared to previous years, this is significantly lower for this time of year. Meanwhile, the minimum hourly price has moved away from the zero or negative levels seen last week, rising to as much as €28. The maximum price remains relatively stable compared to earlier periods.
In the power generation mix, natural gas has taken the lead this week, pushing renewable energy sources (RES) to second place. Large hydroelectric plants contribute nearly 5%, while imports remain very low at less than 4%. Another factor contributing to wholesale prices staying below €100 is the international price of natural gas, which has been on a downward trend over the past month. Notably, the European benchmark TTF contract is now trading around €30, down from €35 previously.