The fall in the price of blue fuel is caused by a number of factors, in particular, the growth of solar energy production in Germany.
Gas prices in Europe have fallen to their lowest levels since mid-2021, when Russia first began cutting supplies ahead of its invasion of Ukraine. This was reported by Bloomberg on May 30.
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The current situation is caused by an increase in imports of liquefied natural gas, relatively mild winters, a decrease in production, as well as the use of renewable energy sources.
It is noted that the market, in particular, is affected by the production of solar energy in Germany, which has reached an unprecedented level.
Thus, the underlying Dutch futures fell for eight weeks in a row and on Tuesday traded at 24.56 euros per megawatt-hour.
“Gas prices are down more than 65% this year, with little indication that the decline will end anytime soon… Stocks are filling up quickly and are likely to be completely filled by earlier than usual,” writes Bloomberg.
Prices in Europe are under pressure from record solar production, analysts say. In the first four months of 2023, it increased by 11% compared to the same period last year.
The agency predicts that by 2030, wind and solar power will account for 76% of total generation.
It was previously reported that short-term gas prices in Europe could fall below zero this summer if demand does not catch up with supply.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.