According to a new report by Montel Analytics, energy generation from fossil fuels in Europe reached a record low in Q2 2024 while demand for solar power increased.
The new report also demonstrates that Q2 saw a record high of solar and wind energy generation. Notably, the generation of solar power increased to 86.2TWh – an increase of 15%.
This helped create an increased amount of negative day-ahead electricity prices in Europe.
The current expansion of solar and wind capacity contributed to Europe’s trend of decreasing electricity demand. Following this, the number of hours with say-ahead prices increased – to at or below €0/MWh.
Current events in the Middle East and Russia interrupting shipments and gas flows, and reduced supplies from Norway due to maintenance issues, contributed to a rise in gas prices during Q2 2024.
The TTF price for gas rose to €31.49 per MWh, which was a 15% increase from Q1’s figure of €27.45 per MWh.
Director of Montel Analytics, Jean-Paul Harreman, comments on the impact of renewable energy on gas prices: “The key drivers behind this trend include higher renewable generation and steady demand.”
Highlights
- Fossil fuel production totalled 131.9TWh – 24% down from Q2 2023
- Gas fell by 27%, coal fell by 28%
- Wind rose to 107.6TWh – an increase of 9%
- The UK, Italy, France, and Germany saw the largest declines in gas energy generation – at 8.42TWh, 8.22TWh, 6.84TWh, and 5.60TWh respectively
- Germany, Poland, and the Netherlands saw the biggest decreases in coal energy production – at 2.37TWh, 1.38TWh, 1.29TWh, and 1.27 TWh respectively
