Gas got a lot cheaper again on Friday. As a result, the price of fossil fuels has approached the price at the beginning of this year.
The warm weather this winter means that European gas supplies remain full. So European countries and energy companies want to spend less money on gas.
In addition to mild winters, more electricity is generated using wind turbines. As a result, less gas is needed to generate electricity.
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. At the end of the day it was about 10 percent lower. This means that the difference with the price at the beginning of this year is still about 13 percent.
Shortly after the Russian invasion of Ukraine, the price of gas peaked at over €200 per megawatt hour. When Russia largely turned off the gas tap this summer, the price of gas shot up to nearly 350 euros per megawatt-hour.
From that moment on, European countries bought gas en masse from elsewhere in order to fulfill their obligations, but also to fill gas storage facilities.
By the way, the price of gas is still much higher than it was last summer. In mid-2021, the price was still around 20 euros per MWh.
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