The outbreak of the COVID-19 virus has sent shockwaves across the globe. The European energy industry is no exception, having been significantly impacted by social distancing and home-working measures, leading to depressed demand and prices for gas, carbon and power.
In this week’s report we cover:
- Crude oil futures increased across the curve, driven by production cuts and expectations of rising demand as the lockdown is eased
- NBP Gas futures fell further for 2020 delivery, but increased slightly from 2021 onwards
- EUA Carbon prices increased to over 21€/tonne – around 10% below pre-COVID levels
- Power demand fell across Europe due to warmer weather, and continued lockdown restrictions and power prices fell across much of continental Europe, remaining on average 12% – 40% lower than pre-COVID levels. Average prices fell by nearly 80% in GB last week, compared to the previous week
How will COVID-19 impact economies, financial markets and energy markets over the short-term? What are the long-term implications for power markets across Europe in different scenarios? What will this mean for power prices, generation, investment decisions and returns for different assets?
This report offers an in-depth look at the impact of COVID-19 on European power markets, covering France, GB, Germany, Ireland, Netherlands, Poland and Spain. Choose from either one country, or all.
Some of the key questions the report seeks to address include:
- What impact will the length and severity of economic disruption have on power prices?
- How will this affect returns and valuations for renewables, thermals and storage assets? Who wins and who loses?
- What is the interplay between global economic activity and European power market outcomes?
- What are the risks facing stranded assets?
- How do different European countries compare?
In addition to a comprehensive report exploring the impact of COVID-19 on power prices and asset economics under different economic scenarios, you will also receive a full dataset in Excel.
Order your copy via the button below. Subscribers are entitled to preferential rates.
Our ‘Aurora on COVID-19 implications’ podcast series comprises interviews with key industry leaders discussing the impact of COVID-19 on the energy sector, from a wide variety of perspectives. In the final episode of this series we are focussing on power market economics, prices and policy. Aurora’s CEO John Feddersen is joined by Richard Howard, Aurora’s Research Director who coordinated the recent work on the impact of COVID-19 for the power sector.
The main topics tackled in this interview include:
- The major recent impacts on gas, carbon and power markets in Europe
- Key policy implications for the decarbonisation challenge and Green Stimulus measures
- Behavioural change and related impacts on the economy and energy market