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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.

 26  Integrated Annual Report 2020                                             Integrated Annual Report 2020  27
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