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The first and second wave of the virus both took place within 2020 and the measures taken to prevent the spread of the virus resulted in a large drop in energy demand across the European markets, especially in those that underwent strict lockdown measures. A shift of demand towards residential also resulted from the increased time spent at home (including home-working). Politically, national energy affordability measures were subsequently taken. In parallel retail prices for both electricity and gas followed a substantial downward trend.But what really happened to prices and what was the impact of COVID-19?
COVID-19 restrictions and affordability measures have had a major impact on wholesale and retail electricity prices (and to a lesser extent gas prices) in most if not all European markets. In the latter half of 2020 the second COVID-19 wave had a similar, though more limited, impact on prices. However, longer term trends and dynamics in both wholesale and retail prices were also highly influential, indicating above all that the fundamentals of energy markets have prevailed even during the exceptional events of the COVID-19 period.
VaasaETT has just published its second (free to download) periodical analysis of the COVID-19 pandemic, providing an in-depth analysis of what measures were taken across Europe during the pandemic (by governments, regulators and market players) to protect energy consumers and what were the impacts of the pandemic on energy prices.
The report is available here: