The Dutch electricity price (baseload, monthly contract) fell to EUR 75/MWh in the last month. This drop is closely linked to the development of the gas price, which fell due to very high gas stocks and relatively low (seasonal) demand. With the heating season approaching, the winter weather will become a crucial factor in the energy markets. With the possible development of a so-called weak polar vortex, a cold winter could make its appearance in Europe for the first time since the energy crisis.
In the ETS market, the price of emission allowances has recently fallen below the technical support level of EUR 65/tonne. With that, an activation of the national carbon tax before 2025 seems almost certain at current prices.
Furthermore, in this Market Update we look at the implications of the policies announced in the Budget Day documents. In these, ambitions for green (and blue) hydrogen do not seem to match the allocated financial resources. Nuclear energy, on the other hand, is being paid for. Finally, we discuss relevant recommendations concerning the energy sector from the Draghi report on EU competitiveness.