The Dutch electricity price recovered to around EUR 70-75/MWh, from a low of EUR 66.60/MWh in mid-July. Price fluctuations were partly caused by shutdown of the Freeport LNG plant and a heat wave in Europe, which increased electricity demand. For the coming months, risks lie mainly in the maintenance of Norwegian gas infrastructure and French electricity exports. The European electricity price has stabilised but is still relatively high, especially compared to the US one.
In the remainder of the Market Update, the carbon intensity of western Europe is contrasted with that of eastern member states. The extent to which coal is represented in the electricity mix – and the extent to which this share is being phased out – is an important factor in the evolution of the EU ETS price. Finally, two key IEA reports are discussed, looking at the electricity and coal markets for 2024 and 2025.