The slight downward price trend in the Dutch electricity market is mainly explained by rising solar and wind production and the above-average capacity of hydropower plants in Europe. Water reservoirs are full, pushing gas and coal-fired power plants out of the market and thus putting pressure on electricity prices. High hydropower production – together with stable generation from nuclear power – was also behind the extremely low spot price in France on 26 July last. A breakdown at trading exchange Epex Spot caused day-ahead trading for power to take place at local auctions. This Market Update describes how this – although unwise – fit well into French election rhetoric.
In addition, the EU announced the 14th sanctions package against Russia, which, among other things, restricts the transit of LNG through European ports. Finally, a technical analysis argues why the EU ETS price is likely to continue moving within a narrow range for the time being. Added to this, stricter EU ETS policies following the growth of the right-wing conservative bloc in the European Parliament are not obvious, making a faster upward price trend more unlikely.