A recent report by the European Commission highlights significant growth in European Electricity demand, and resilience in the EU’s gas and electricity markets during the third quarter of 2024.
Key Findings
- Energy Supply Stability
- Enhanced integration among EU member states and expansion of renewable energy sources have ensured a stable energy supply.
- Electricity demand showed moderate growth, while gas demand declined significantly.
- Gas and Electricity Price Trends
- Gas Prices: Wholesale prices saw a slight rise in early Q3 but fell by September. Retail prices continued to decline year-on-year but increased slightly compared to the previous quarter.
- Electricity Prices:
- Wholesale prices dropped 8% YoY, averaging €78/MWh.
- Household electricity costs in EU capitals decreased 6% YoY, averaging €241/MWh.
- Shift in Gas Imports
- The price gap between European and Asian markets widened, redirecting more LNG shipments to Asia.
- This led to reduced LNG imports into Europe and increased reliance on piped gas, primarily from Norway.
Economic Impact
The decline in gas and electricity prices has positively impacted the EU’s trade balance, boosting investments in the energy sector and lowering household energy costs, further enhancing consumer purchasing power.
Future Energy Directions in Europe
- Renewable Energy Focus:
The EU aims to expand its renewable energy usage and reduce dependency on LNG, aligning with global sustainability goals.