Electricity prices on the continent fell below zero at the weekend as the sunny weather boosted production at Europe's growing solar parks. And: China is exporting a record monthly volume of liquefied natural gas.
The phenomenon has been a regular occurrence in Europe for several years, but values far below zero are still unusual. In March, the number of negative hours in Germany doubled compared to the previous year, according to data from Epex Spot SE.
In Belgium, for example, tariffs fell to as low as - 266 euros per megawatt hour on Sundays between 1 and 2 pm. In the Netherlands, prices fell to - 189.90 euros and in Germany to - 129.81 euros, according to Epex.
Sharp rise in installed solar capacity in the EU
The European Union's installed solar capacity roughly doubled between 2021 and 2024, especially after the energy crisis highlighted the dangers of dependence on imported fossil fuels.
Contracts for next month on the European Energy Exchange AG fell by 3.7 per cent to EUR 65.35 per megawatt hour. Matthias Apel, analyst at industry consultant Ispex AG, attributed the decline to the latest weather forecasts, which had predicted cooler temperatures for the beginning of May. "This will probably be accompanied by higher wind energy production," said Apel.
News from the Middle Kingdom
Correspondingly, new events in China: China has re-exported more than 280,000 tonnes of liquefied natural gas (i.e. LNG purchased from "outside" and sold internationally again) so far in April, the highest volume ever exported in a single month, according to ship tracking data compiled by Bloomberg.
The high volume of these exports is likely due to weak domestic demand, as China does not urgently need the frozen fuel due to the mild winter and high stockpiles. The country could also benefit from higher prices abroad.
Resales provide relief for other countries
Exporting cargoes from Chinese ports is rare, but China has turned to the practice since November, with volumes increasing since the start of the year, according to Bloomberg data. Before November, China had last re-exported cargoes in January 2024.
The resales could provide relief to buyers elsewhere, particularly importers in Europe looking to replenish stocks and make up for the loss of Russian pipeline shipments. It's all connected. Power2market stays tuned for you.
