European wholesale electricity prices varied in August, with most regions recording higher prices, except Poland and Greece, which experienced price decreases of around 9 euros per MWh and 3 euros per MWh, respectively. The Netherlands recorded the most significant price surge of 19.5 euros per MWh. Germany followed closely with a notable uptick of 17 euros per MWh. This price increase in Germany, along with its neighbouring markets, had a ripple effect, causing prices to inch upward in other observed regions, ultimately resulting in price convergence.
The increase in prices within the CWE market can primarily be attributed to a 5.8 GWh or 27% decrease in wind power production , originating from Germany. Additionally, solar power production decreased by 2.1 GW (13%). To compensate for these reductions, Germany boosted its coal production by 2 GW, the Netherlands increased its gas production by 1.3 GW, and there was a notable uptick in imports from the Nordics and SEE regions.
The weighted average front-month TTF gas futures increased by 5.6 euros per MWh (19%) to 35.4 euros per MWh. Carbon emission allowances decreased by 2.4% to 86.2 euros per ton. The combined effect of these factors led to a 10.2 euros per MWh increase in the marginal cost for a 50% efficient gas power plant, subsequently translating into higher power prices.