Benchmark electricity prices in Europe have fallen to levels last seen two years ago in a positive sign for the continent’s economy as its gas and nuclear crises ease, according to Bloomberg.
A more plentiful supply of liquefied natural gas has provided a stable source to fuel many of Europe’s power stations. At the same time, extensive repairs have eased supply-crunch concerns around France’s vast fleet of nuclear reactors, which make up about two-thirds of the country’s power output.
The sustained fall in power prices provides relief to Europe’s ailing industrial sector, which has sounded dire warnings amid unbearably high costs of production. Soaring electricity bills have pushed businesses and households to reduce their energy consumption, especially as inflation bites across the economy.
Power for delivery in Germany next year fell to €110.18 per megawatt-hour on Tuesday, its lowest close since November 2021. The French equivalent has reached similar lows — though both remain about double the cost compared to before supply imbalances drove prices higher earlier that year.
Costs haven’t fallen as sharply as many energy-intensive sectors had hoped. In a report last month, the European Chemical Industry Council said the sector hasn’t seen a recovery materialize and that demand for chemicals is still on the decline.