#AskElda - May 2024
Eurelectric
Voice of European electricity. Leading the energy transition through electrification #WePowerEU #Grids4Speed
Welcome to #AskElda Monthly, Eurelectric 's newsletter highlighting trends in EU electricity, powered by Elda , our new data tool.
You can #AskElda questions about electricity generation, consumption, CO2 emissions, and market prices in the EU and beyond. You also get to download data and visuals for your research, social media posts, and more!
Got an electricity-related question? #AskElda at https://electricity-data.eurelectric.org/ .
Check out the key developments from May 2024 below:
Electricity generation
In May 2024, electricity generation was similar to April, with a marginal 4.6 TWh decrease due to reduced demand. Renewables continued to dominate, providing over half of the EU's electricity, while fossil fuels hit a record low of 22.4%. A 5.6% drop in wind power was offset by a 3.7% increase in solar and a 2% rise in hydropower and other low-carbon technologies. For the first time in 2024, solar PV overtook wind, becoming the EU's third largest electricity source after nuclear and hydro. In May, solar was the leading source in Germany, Estonia, and Spain. Additionally, 20 member states had clean technologies as their leading power source.
Year-to-year, May 2024 saw a 13% decrease in wind electricity. However, the share of renewables increased by 3.6% due to an additional 12.1 TWh from hydro, solar, and nuclear, along with an 8.6 TWh reduction from coal and gas. Year-to-date, nearly 50 % of the EU’s electricity in 2024 has come from renewables.
Electricity demand
EU electricity demand dipped slightly in May compared to April, reflecting the shift to warmer weather. However, some southern European countries saw a marginal rise in demand, likely due to increased use of air conditioning. Year-over-year, May 2024 demand was only marginally higher than May 2023 and well below the normal average, suggesting that industrial production has not yet picked up from the slowdown in 2023.
CO2 intensity and prices
The CO2 intensity of the EU’s power generation saw a marginal decrease in May 2024 compared to April, due to increased solar and hydropower generation and reduced fossil fuel usage. Year-to-date, Eurelectric estimates the EU’s CO2 intensity at a historic low of 165 gCO2/kWh. However, 11 member states still exceed the EU average. France had the lowest CO2 emissions per unit of electricity in May, thanks to its large share of nuclear generation.
CO2 prices closely tracked rising gas prices, driven by tight LNG supply, competition with other global hubs, and geopolitical risks. The monthly average rose to 71.3 EUR/ton, up from April's average of 63 EUR/ton.
Day-ahead electricity prices
In May, day-ahead power prices rose by 10%, likely due to gas prices reaching their highest level of the year, increasing by about 3 EUR/MWh from the previous month.
Negative price hours surpassed 1,500, with German and Swedish bidding zones leading with around 80 occurences. The negative impact on renewable generators’’ revenue is visible in Germany's capture prices for wind and solar power. In May, wind's capture price dropped to 30 EUR/MWh and solar's fell to 12 EUR/MWh. These are the lowest capture prices seen since 2020, the year of the COVID-19 pandemic.
Cross-border flows
In May, the EU doubled its electricity exports compared to the previous month, solidifying its role as a net exporter. Consequently, Norway, usually a net exporter to the EU, has become a net importer. France remains the leading exporter, and Italy the top importer, while the Netherlands shifted to net importing.
The UK-EU interconnectors operate at an average of 71% capacity, while Norway's interconnectors range from 28% with Finland to 74% with Germany.
Have you missed this?
Check all the data here or contact Mohammed Abi Afthab Olikathodi ([email protected] )