"Energy Price Perspectives": our press webinar by EnergyScan
Sharing Valuable Insights on Wholesale Energy Markets
- Article
- 05/07/2023
We recently organized a press conference on the topic of “Energy Price Perspectives” and presented some valuable insights.
Our team at ENGIE Global Energy Management & Sales had the privilege to share our expertise and present the latest developments in the wholesale energy markets. During the conference, we discussed the evolution of the markets since the beginning of the crisis, highlighting important factors such as the major gas market places in Europe and the interconnection of the European gas network.
Drop in Wholesale Gas Prices
One key takeaway was the significant drop in wholesale gas prices in Europe since the start of the year, with spot prices experiencing a noticeable decline while future prices remained relatively stable at a higher level. We also discussed the storage levels of gas in Europe, which have reached a record high, signaling a relaxed market in the coming months but a persistent risk premium for future years.
Contraction in Gas Demand and LNG Imports
Additionally, we addressed the contraction in gas demand across Europe, particularly in the industrial, electricity production, and public distribution sectors. Similarly, we highlighted the decrease in LNG imports in Asia, emphasizing the European market’s substantial imports of liquefied natural gas.
Unveiling Five-Year Price Forecasts
Furthermore, we unveiled our five-year price forecasts, offering valuable insights into energy prices for our professional clients. Our forecasts are based on meticulous analysis, incorporating macroeconomic assumptions, supply-demand balance projections, fundamental indicators for gas and electricity prices, and considerations of production availability.
The gas prices in Europe are expected to remain “on a high plateau” around 60€/MWh until 2027, according to market analysts. Electricity prices in France are projected to stay at a high plateau between 2023 and 2025 before a limited downward movement begins from 2026 onwards.
Gas & Electricity Price Forecast: Factors and Outlook
The forecast revealed that gas prices are expected to remain high until 202 7, influenced by factors such as high stock levels, a challenging macroeconomic environment, and limited new LNG export capacities.
For electricity prices in France, a plateau of elevated prices is foreseen between 2023 and 2025 due to low nuclear production and sustained prices of fuels and CO2 quotas. However, a limited downward trend could be anticipated from 2026 onwards, driven by improved nuclear availability, reduced fuel costs, and increased renewable capacity installation.
Our presentation introduced EnergyScan, a platform designed to simplify energy markets. With its user-friendly interface, customizable features, and access to comprehensive data covering wholesale energy markets in France and internationally, EnergyScan aims to empower professionals in making informed decisions regarding risk coverage and investments.
We are proud of the valuable knowledge and perspectives we shared during this press conference, and we invite you to learn more about EnergyScan and its offerings on our website. Stay informed, make data-driven decisions, and navigate the dynamic energy landscape with confidence!
They speak about us [FR]:
- Le Monde: Prix du gaz : ENGIE s’attend à « un plateau haut » jusqu’en 2027
- Green Univers: Electricité et gaz : les prix de marché d’ici 2027 vus par ENGIE GEMS
- La Tribune: Énergie : les prix ne baisseront pas significativement avant 2027, prévient ENGIE
- Wansquare: Le marché du gaz encore sous tension pour plusieurs années