The common pure fuel retail worth within the European Union fell 10 % to EUR 101 ($109.3) a megawatt hour (MWh) within the second quarter in comparison with the identical three-month interval final 12 months, official information confirmed Thursday.
The 2024 second-quarter determine is 4 % decrease than the prior quarter. Nevertheless, in comparison with the common retail fuel worth within the first quarter of 2021, the interval earlier than the vitality disaster that continued into 2022, the newest determine is 53 % increased, in keeping with the European Fee’s quarterly fuel market report.
The vitality part, or the price of fuel on the level of entry into the transmission system, constituted 53 %, or EUR 53 ($57.4) per MWh, of the common retail worth within the second quarter of 2024. The community value — transmission- and distribution-related expenses — accounted for 22 %, vitality taxes 10 % and value-added taxes 16 %, in keeping with the report revealed on the Fee’s web site.
- Advertisement -
Eighteen of the EU’s 27 member states noticed retail costs drop year-on-year. Lithuania noticed the largest year-on-year lower at 31 %, adopted by Czechia at 26 % and Latvia at 22 %. Baltic neighbors Lithuania and Latvia are amongst 9 EU nations that didn’t have fuel manufacturing of their territories as of June, in keeping with the report.
On the wholesale stage, European spot costs — based mostly on the digital buying and selling platform Title Switch Facility — averaged EUR 31.7 ($34.3) per MWh within the second quarter. That’s 10 % decrease than the identical quarter in 2023 however 16 % increased than the prior quarter in 2024.
As compared, the hub with the bottom costs, Henry Hub in america, logged a quarterly common of EUR 7.42 ($8) per MWh. However the most costly within the second quarter was the Japan/Korea Marker at EUR 35.8 ($38.8) per MWh, in keeping with the report.
On ahead contracts positioned by EU corporations, the report famous, “The 2-years- and three-years-ahead contract displayed a comparatively smaller improve of 9 % and 6 % improve, respectively, indicating moderating costs additional forward”.
“Ahead contracts indicated comparatively steady costs within the subsequent three months however steeper will increase later within the final quarter of 2024 and worth decline farther forward”, it added.
Evaluating second-quarter costs at European fuel buying and selling hubs, “the very best costs are concentrated in Central Europe, whereas Western Europe maintains comparatively steady with decrease costs in Germany, France and Belgium, being essentially the most aggressive hubs within the second quarter of 2024”, the report stated.
“Fuel wholesale costs continued to converge on the EU inner fuel markets, facilitated by clean cross-border flows and aggressive provide circumstances”, the Fee stated in a separate assertion.
EU fuel consumption within the second quarter totaled about 61 billion cubic meters (2.2 trillion cubic toes), down six % year-over-year on the decline of fuel enter in energy vegetation. In comparison with the earlier quarter, demand dipped 45 % after the winter heating season ended.
The Fee’s assertion attributed the decrease demand to a decline in fossil fuel-fired electrical energy manufacturing, rising renewable technology and vitality financial savings. The Fee’s separate electrical energy market report, additionally launched Thursday, confirmed that renewables accounted for 52 % of the facility combine, a brand new report after renewable sources overtook fossil fuels for the primary time final 12 months.
EU fuel manufacturing fell 18 % year-on-year and eight % quarter-on-quarter to eight billion cubic meters (282.5 billion cubic toes). For the primary time Romania grew to become the largest producer at 2.3 billion cubic meters (81.2 billion cubic toes), adopted by the Netherlands at 2.2 billion cubic meters (77.7 billion cubic toes) and Germany at 900 million cubic meters (31.8 billion cubic toes).
Imports stood at practically 70 billion cubic meters (2.5 trillion cubic toes), down 9 % year-on-year and steady quarter-on-quarter. Pipeline deliveries accounted for 64 %, half of which got here from Norway with the remainder from North Africa (19 %), Russia (17 %) and Azerbaijan (seven %).
For liquefied pure fuel, america remained the EU’s largest provider, accounting for 44 %. It was adopted by Russia at 19 %.
In comparison with 2021, the 12 months earlier than Russia invaded Ukraine, Russia’s whole share of EU fuel imports within the second quarter of 2024 represents a 70 % decline, the report stated.
“The most recent Fuel Market Report highlights that EU fuel markets have stabilized, having adjusted to the structural adjustments prompted by Russia’s invasion of Ukraine and the associated fuel provide disruptions, in addition to the measures launched to sort out the disaster”, the Fee stated within the assertion on its web site.
To contact the writer, electronic mail jov.onsat@rigzone.com
