European Power Summer Outlook Snapshot 2018

Wholesale electricity prices are set to remain on the high side in most European markets this summer, but the risk of price spikes will be mitigated in several countries by better hydropower stocks compared to the previous year.

Commodities will continue to remain a source of support, with price gains on the coal and gas markets a key driver in recent months.

Injection-related buying could also continue to prop up natural gas prices, which will have to have a knock-on effect on markets with high penetration of gas-fired generation.

This Power Summer Outlook Snapshot provides a brief overview of the drivers likely to influence power prices this summer, and an idea of what to expect in the coming months.

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