Gas has become considerably cheaper again on Friday. As a result, the price of fossil fuel has come closer to the price at the beginning of this year.
The warm weather this winter means that European gas supplies are still full. As a result, European countries and energy companies are willing to pay less to buy more gas.
The price of a megawatt hour of gas on the leading stock exchange in Amsterdam was still above 80 euros at the start of the trading day, but by the end of the day it was about 10 percent less. This means that the difference with the price at the beginning of this year is still about 13 percent. And that while the price of gas peaked at more than 200 euros per megawatt hour shortly after the Russian invasion of Ukraine.
Russia turned off gas taps
When Russia largely turned off the gas tap this summer, the gas price rose even further, to almost 350 euros per megawatt hour. From that moment onwards, European countries bought gas en masse elsewhere in order to meet their obligations, but also to fill the gas storage facilities.
In addition to the favorable temperatures, more electricity is generated by wind turbines. As a result, less gas is needed to generate electricity.
Incidentally, the gas price is still well above last year’s summer. Halfway through 2021, the price was still around 20 euros per megawatt hour.