25% reduction in gas consumption in European power plants

European power plants are expected to reduce their gas consumption by 25% this summer, thanks to increased solar and hydro capacity.

July 22, 2024 Rudy Vervant

Countries	Belgique, Espagne, France, Royaume-Uni, Grèce, Italie, Pologne
Companies	Engie, EnBW, Edison, Uniper, Enel, Motor Oil, S&P Global Commodity Insights, GEK Terna
Sector	Gaz, Gaz naturel
Theme	Marchés & Finance, Analyse sectorielle

Europe is experiencing a significant drop in gas consumption for power generation this summer, with a 25% reduction forecast for the third quarter, according to analysts at S&P Global Commodity Insights.
This follows a 31% drop in the second quarter, resulting in record gas consumption levels the lowest since 2001, but also from reduced imports of Russian gas.
This trend is mainly due to increased solar and hydro power generation, as well as to an overall demand for electricity that is still slow to recover.
Analysts anticipate that combined-cycle gas turbine (CCGT) power plants will remain relatively unused due to the increase in renewable generation.
In addition, low gas prices entering the third quarter could further reduce their utilization.
A UK-based trader highlighted the increase in French renewables and nuclear generation, as well as very good hydroelectric production, as key factors in this trend.