Gas storage levels significantly lower than in previous years

Last week, the average Dutch spot price was 132.3 €/MWh, compared to 113.3 €/MWh the previous week. At the beginning of the week, wind production was relatively low. However, solar generation increased for the first time in a long period. Solar panels generated a significant amount of power for this time of year, which was reflected in lower spot prices during the afternoon hours. Prices dropped quickly below the variable costs of gas plants, causing some plants to shut down.
In France, temperatures fell below the seasonal average, significantly increasing power demand. At the same time, several French nuclear plants went into maintenance. Throughout the week, gas and coal plants were needed to meet French demand. As a result, France’s spot price was nearly 6 euros higher than that of the Netherlands, marking the first time in almost a year where such a price spread could be witnessed.
Gas plants became even more expensive as gas prices climbed throughout the week, approaching 56 €/MWh. March and April contracts closed 2.5 euros higher at 55.7 and 55.6 €/MWh, respectively. Gas storage levels across Europe are currently much lower than in previous years. For example, German storage levels fell below 50%, while Dutch storage was around 35% full. Additionally, weather models indicated that temperatures would likely remain low, at least in the short-term.