Helping you make sense of the Irish energy sector


November 2020


Wholesale energy prices fell to record lows in April

Joe Camish
Joe Camish
15 May 2020

This week we look back at wholesale power price development throughout April, a month which saw notable bearish price movements.

The most prominent of these were the movements in the day-ahead power price. Across April the price averaged €28.0/MWh, the lowest monthly average since the commencement of project I-SEM back in October 2018 – highlighted in Figure A.

The monthly average also represented a €6.3/MWh reduction on the previous month, and a €21.4/MWh discount year-on-year. Power prices were influenced by the well documented drop in demand stemming from COVID-19 measures, which has seen power demand fall by 20% on average since the start of March.

Prices were also dragged lower by other market movements as day-ahead NBP gas prices dropped 40%, reaching a 14-year low mid-month. While Brent crude oil and coal prices dropped 23.1% and 19% month-on-month respectively.

It should also be noted that downward power price movements would have been pegged back by low wind generation throughout the month – which accounted for 25.1% of the generation mix last month, the lowest levels this year. Therefore, if conditions were equally windy as the previous month, we could have observed even lower power prices in April.

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