Electricity – No Slow Season on the Energy Markets
Electricity Prices: As winter approaches, high gas prices are having an increasingly significant impact on electricity prices, because gas-fired power plants are more often setting the marginal price as the share of renewable generation declines.
TTF Price: The recent rise in the TTF price is primarily driven by a renewed geopolitical risk premium, while the fundamental market tightness is further intensifying due to the lack of LNG exports through the Strait of Hormuz and maintenance at the Freeport LNG terminal.
Imbalance Market: The sharp increase in Control State 2 indicates that an increasingly dynamic electricity system is switching from a surplus to a deficit within a single quarter-hour more frequently.
EU ETS: The recent rise in the ETS price underscores that market reactions are driven by the difference between market expectations and the final policy proposals.
