As Winter Turns to Spring, What’s in Store for the Energy Markets?
#1 Reduced nuclear power consumption continues
This year has seen significant changes in the European power balance compared to 2022. One of the most noticeable changes is the decline in consumption and performance in nuclear power production in recent months. The downward trend in thermal production from sources like lignite, coal, and gas is also expected to continue at full speed throughout the rest of the year. This is due to the strong reduction in consumption, as well as a significant increase in wind and solar production.
Tor Reier Lilleholt, Head of Analysis, Volue
#3 Large drops in the Carbon Markets
We expect emissions in the EU ETS market to fall considerably in 2023. This is largely due to the persistent decline in power consumption, which has reduced the reliance on thermal power sources. We also identify the possibility of higher gas shares in thermal power than earlier envisioned. As a result of these factors, we predict that CO2 prices will gradually decline over the course of the year.
Espen Andreassen, Senior Analyst, Volue.
Want to know more about Insight?
Our team forecasts fundamentals and energy prices for the short, medium and long-term horizons. We offer pan-European market coverage and, fundamentals and real-time forecasts for Japan.
If you want to know more about our spot market fundamentals and prices, check below.