mckinsey.com
By Eivind Samseth, Fabian Stockhausen, Xavier Veillard, and Alexander WeissO
Open interactive popup Article (8 pages)
European power markets have entered a period of unprecedented change. Power prices have touched new highs: baseload week-ahead prices have risen above €200 per megawatt-hour (MWh)1 in a number of European countries—about four times the average historical level. That increase has been prompted largely by a surge in natural-gas and carbon prices, which currently exceed €100 per MWh2 and €60 per metric ton, respectively. This development has affected the cost of power produced by natural-gas power plants, which broadly set prices in European markets.
At the same time, price volatility is reaching new heights as a result of the uncertain output of renewable assets and a tight supply-and-demand balance in the European power system. Navigating this next normal will be a key challenge for utilities, traders, and large power consumers, and that highlights the importance of developing resilient power-asset portfolios and managing risk.
In this article, we explore five trends that will shape the European power sector in the decade to come and offer some perspectives on how utilities and large consumers might respond.
What’s ahead for the European power sector?
The European power market is undergoing major changes. Five trends underpin these developments.
Tiếp tục đọc “Five trends reshaping European power markets” →