59 / 118
Gas Regional Investment Plan of the South Region 2017 |
59
0
110
120
100
90
80
70
130
60
50
40
30
10
20
€/MWh Marginal Price
Jan 16 Feb 16 Mar 16 Apr 16 May 16
Jun 16
Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16
Jan 17 Feb 17
France
Portugal
Spain
Figure 5.11:
Marginal prices of day ahead electricity markets in Portugal, Spain and France from October 2016
until end of February 2017 (Source: REE)
From January 2017, spreads in the South Region are expected to decrease, due to
lower gas demand and higher LNG supplies as liquefaction facilities progressively
re-start production.
During the last quarter of 2016 and beginning of 2017, French electricity market has
been coping with the unavailability of several nuclear power plants. Gas power
plants in France, and as well as in neighboring countries thanks to electricity
interconnections, have largely made up for the resulting additional power needed.
This illustrates how close electricity and gas system are interlinked, providing flexi-
bility and solidarity, and optimising production capacities in each country through
interconnections.
The facts previously described highlight the importance of guaranteeing security of
gas supplies and show potential collateral effects of tense gas supply situations on
electricity system. As it can be seen in figure 5.11, high electricity prices were
reached in the South Region, especially for France, in the last months of 2016 and
January 2017.