Electricity Prices, markets & analysis
The European wholesale electricity markets are developing quickly, with liquidity growing across the continent. Electricity professionals in this rapidly moving market need access to independent and reliable information to help them make decisions faster.
At ICIS, we provide expert coverage of the electricity markets in Europe, supplying our customers with the latest over-the-counter price assessments, news, monthly analysis and unrivalled information on the European renewable energy markets. Our new European Power Trading Report will give you information on established markets of Europe and a lot more!
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Electricity Overview Transcript
The interesting thing about the European Electricity markets is that electricity can’t be stored so unlike other commodities, you don’t have the ability to put things in storage, and you don’t have those dynamics.
The grid has to balance the power market every minute of every hour of every day.
Another thing that’s making electricity really interesting right now is that it’s a key part of the renewable energy policy of the European Union. The European Union is relying on power to make up most of its renewable energy targets. And so gas-fired generation, coal-fired generation and hydro-generation is coming together with newer forms of renewable forms of generation such as wind and solar and the differences in weather make for very volatile pricing.
How we can help
Electricity news and market information products from ICIS
We offer the following regional Electricity analysis and news coverage to keep you informed of factors and developments affecting prices in the Electricity marketplace.
Price Reporting – More information about the price reports we publish on Electricity
Independent price assessments and market coverage by region
Price History – More information about the historical price data we publish on Electricity
Track historical price data
News & analysis
News & Analysis - News & market analysis specifically relating to Electricity
Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Electricity: Market overview
Updated to Q2 2015
Looking ahead to the second quarter of 2015 on Europe’s electricity markets, figures indicate a floor was reached early in the first quarter of the year, so further sustained losses look unlikely. That said, if the opposite is to occur and the markets are to push into a higher range, something will have to change, either in the fundamental outlook, or elsewhere across the energy complex.
The price of carbon allowances is one potential driver of increased electricity prices, as European politicians debate reform of the carbon market. This should usher in higher CO2 prices which fossil-fuelled power producers would in turn pass on via the wholesale electricity market.
Outright power fundamentals, however, are less likely to drive a shift in valuations. The German market has led Europe in renewable energy development, and this structural change in supply, which has already led to record low prices on long-term contracts, is a permanent transition – one that is here to stay. As Europe’s other major electricity markets largely follow Germany’s example, this will keep a lid on prices throughout 2015, and beyond, unless a sustained increase in consumption offsets the supply-side shift – something that is unlikely for the foreseeable future.
News & analysis
Electricity news & analysis
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
Over 25 years of reporting on key chemicals markets, including Electricity, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.
European Daily Electricity Markets Methodology
European Power Price Drivers
Industrial & Commercial Energy Snapshot (electricity)
The financial value of electricity is established by two methods: 1.Price Assessments. ICIS assesses the market closing prices for a range of European power hubs on the day of publication, and publishes a price range for each delivery period on a number of liquid markets. This is known as the BID-OFFER RANGE, representing the highest buyer’s bid and the lowest seller’s offer at the relevant close of each market. 2.Indexation (Heren Index).
Indices are published for a variety of delivery periods and delivery points. Each Heren Index is a transaction-based price, calculated using the volume-weighted average of eligible transactions (trades) for the relevant delivery period reliably reported to ICIS.