Gas and Electricity Wholesale costs are lower than last week.
Prices have continued their downward trend despite a period of cold weather across Europe and more attacks on shipping through the Red Sea. Airstrikes by the UK and US on Houthi rebels in Yemen and the involvement of Iran, are seeing tensions grow in the Middle East. There is the potential for shipments of Oil and LNG to be diverted via safer routes, delayed or stopped. LNG deliveries have remained high, compensating for the reduced flows of Gas from Russia into Europe.
EU Gas Storage levels are now 74% full, down from 79% last week, which is lower than the 78% in 2023, but still a positive position and far higher than the 44% in 2022. This is potentially a good starting point for later this year when we move from Storage withdrawals to injections, for winter 2024/25. The EU target is 90% full by the 1st of November.
There was a higher Wind contribution over the last week at 31% of generation, reaching 47% on Saturday and Gas was lower at 40%. Electricity Imports from the continent through the Interconnectors were higher at 9%, with the new Viking Link with Denmark providing almost 2%. Gas demand for heating will be lower this week due to temperatures rising above seasonal norm.
With Wholesale prices falling, now is a good time to review energy contracts that end early 2024 and closely monitor those a little further out.
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