Shifting Electricity Costs and Market Dynamics in Europe
In May, the Iberian market lost its title as the region with the lowest electricity costs to France, a position it had held for three consecutive months, according to ALeasSoft Energy Forecasting. Despite record-high solar energy production, wind energy output declined in most countries during this period. Electricity prices across major European markets were influenced by a mix of generation changes, demand fluctuations, higher gas prices, and increased CO2 emissions compared to April. This led to significant price volatility in the day-ahead market.
In May and June, European steelmakers highlighted the impact of electricity costs on their operations and the energy transition. ArcelorMittal urged German authorities to implement clear industrial policies to support the green transformation of its facilities, emphasizing the need for competitive energy prices to justify a $2.7 billion investment decision expected by mid-2025. The high cost of electricity poses challenges to the economic viability of electric arc furnace (EAF) processes.
The German steel association WV Stahl called for reduced electricity costs for small and medium-sized enterprises. In Germany, medium-sized companies rely heavily on the energy-intensive EAF process, which accounts for nearly 30% of the country’s steel production.
Italian trade unions pointed to high electricity prices as a significant factor behind the low productivity of Acciai Speciali Terni, a stainless steel producer now part of the Arvedi Group. The unions noted that energy costs in Italy average $102/MWh, compared to $34/MWh in Germany, $25/MWh in France, and $57/MWh in Spain, severely affecting the competitiveness of Italy’s energy-intensive sectors.
Have you read?
Richest Countries In Europe In 2024.
Most Attractive Countries To Private Equity, Venture Capital, and Hedge Fund Investors.
Revealed: Highest-paid news media executive in the United Kingdom.
Countries Leading the Way on Climate Change.
World’s Best Countries For Adventure Tourism.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
