US attacks on Iran have reached European electricity

The US and Israeli attacks on Iran and retaliatory strikes have reached the EU electricity market, which has only calmed down after the winter cold. After the rise in gas prices, the wholesale cost of electricity also went up rapidly.

Europe did not have time to recover from the winter cold, as the Iranian crisis fell on it. Due to the rise in gas prices, electricity prices in most countries have rushed up. So, according to NordPool, on March 3, the average daily cost of electricity in Germany, Austria, the Netherlands and Poland will grow to 105-107 euros per MWh, and in Baltic States — up to 169-175 euros.

The day before, when the warm weather returned to Europe, prices were almost twice as low. Obviously, in this situation, those countries whose energy system is less dependent on gas generation benefit. For example, in France, where most of the electricity is produced by nuclear power plants, the wholesale price will be 59 euros, and in Finland, which depends on green generation, 27 euros.

The day before, the Ras Laffan complex in Qatar was hit by drones and in Doha was informed about the shutdown of LNG production. In addition, tankers themselves do not go through the Strait of Hormuz, fearing Iranian attacks.

This turn was a slight shock to Europe. For example, in Germany, the wholesale price of gas rose to $ 402 per thousand cubic meters on February 27 to $ 540 on March 2. In the Baltics, prices have reached almost $ 580.

A lot now depends on how long the Iranian crisis and the shutdown of shipping through the Strait of Hormuz will last. The EU is ending the season with low gas reserves and by next winter it will need an additional injection of tens of billions of cubic meters. Previously in Brussels relied on the supply of LNG, including from Qatar.