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Will we have a market recovery before the end of the year?

Will we have a market recovery before the end of the year?

The end of a year that is being tough for the electricity market is approaching, with extremely low prices caused in large part by the drop in demand associated with the COVID health crisis. After a month of September of low prices and a somewhat more recovered October, we find an average price that so far this year has not reached € 34 / MWh, which places us even below € 36.96 / MWh in 2009, marking historical lows. We will have to wait until the last month of the year to see what level the Pool is at.

Graphic REE PMD Spot

In a year in which the prices of gas, oil and CO2 have also plummeted, it seems that the end of the year stabilizes with gas around € 15 / MWh and CO2 above € 25, with close valuations at € 45 / MWh by 2021 in the electricity futures markets despite the uncertainty and the measures that are being adopted in the second wave.

In our monthly report we show you how the future of the Iberian electricity market looks like, which seems to maintain a certain optimism despite the general situation, offering opportunities both to source energy and to ensure its sale at reasonable prices.

José Manuel Ventura
José Manuel Ventura
Energy Asset Manager

Industrial Engineer with experience in the electricity sector in general and in the electricity market in particular, both at a technical and economic level, with a high level of knowledge about the functioning of the market: system costs, treatment of Distribution and Transportation information, settlements , structural data management and market operation. LINKEDIN • EMAIL