Page 29 - InterEnergo - Annual Report 2020

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Summary of events in the and growth in solar energy production. Renewable Figure: Average monthly SPOT electricity prices on the wholesale market in EUR/MWh

energy market in 2020 3 energy production rose further to 43 percent of total
electricity production this quarter, while electricity
prices in wholesale markets fell by a drastic 52
Electricity consumption in the EU-27 fell by percent compared to the same quarter in 2019.
approximately three percent in the first quarter of The third quarter was marked by an economic
2020. Despite the positive outlook at the beginning recovery after the spring closure, which was also
of the year, the emergence of coronavirus and reflected in electricity consumption, which fell by
measures to prevent the spread of the virus led an average of three percent. The price of emission
to a drop in economic activity. Warm winter and coupons recovered and in September exceeded
temperatures, which were 2.7 degrees Celsius above EUR 30/t. This growth was followed by wholesale
the average for this period, further contributed to electricity prices, which also rose higher due
the drop in electricity consumption. The average to the low availability of nuclear power plants in
price of emission coupons fell by eight percent France. Due to seasonality, the share of renewables
compared to Q4 in 2019. In the first quarter of 2020, decreased slightly compared to the second quarter
due to overcrowded storage facilities and lower and amounted to 37 percent. Growth in electricity
consumption, natural gas prices in Europe continued demand has had a positive effect on fossil fuel
their downward trend. Natural gas prices were also production. At the same time, increased production of
followed by coal prices on world markets, but lower electricity from solar energy and a good hydrological
prices did not help to increase production from these picture contributed to satisfactory production of Hungary Germany Italy Greece France
sources. The share of production from fossil fuels fell hydropower in combination with the high price of
from 38 percent to 33 percent, which is a record low.
emission coupons and limited even greater growth Source: Internal analysis.
Electricity prices on the European wholesale market in the production of energy from coal. Wholesale
fell by almost a third in the first quarter compared prices on the spot market reached the level of prices Figure: Average monthly electricity consumption in MWh
to the end of 2019. The reasons for the decline in on forward markets with the economic recovery at
prices can be attributed mainly to relatively warm the end of the quarter.
weather during this period and good conditions The last quarter was marked by the second wave
for electricity production from renewable energy of the COVID-19 pandemic, which also had a strong
sources. The share of electricity production from impact on the electricity market. Electricity demand
renewable energy sources reached 40 percent of fell again, but this time less than during the first
total electricity production.
wave. The price of emission coupons continued to
The trend from the end of the first quarter continued rise, mainly due to stronger commitments by EU
in the second. Electricity consumption as a whole members to reduce greenhouse gas emissions and
fell by 11 percent compared to the same quarter in a more active transition to green energy sources. At
2019. The price of coupons in the spot market fell the end of December, the price surpassed EUR 33/t
further on average compared to the first quarter, and ended the year at a record high. Until the end of
but price and liquidity rose by the end of the quarter. the year, energy prices followed the trend from the
Coal production experienced a sharp decline, as third quarter. Compared to the same quarter of 2019,
it was pushed out of the energy mix by a more wholesale electricity prices mostly achieved positive
competitive gas due to lower demand for electricity growth, and in some countries exceeded five percent.

Region Germany Italy Greece France
* The region represents the monthly average electricity consumption of the following countries: Hungary, Slovenia, Croatia, Serbia, Bosnia and Herzegovina,
Montenegro, North Macedonia, Romania and Bulgaria.
Source: Internal analysis.

Source: Internal analysis based on data from quarterly EU Commission reports.
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