EU Could End Winter Season with 55% Gas Storage: Volue

European power and gas forward prices should see downward pressure due to improved supply relative to last year, weak demand and mild weather said consultancy Volue this week according to Montel. European gas storage facilities are expected to end the winter season at about 55% capacity under normal conditions with bearish early season pressure from milder and windier weather than normal.

• Low demand should help Europe get through the winter by a “comfortable” margin, said Thorsten Burandt at Volue. An industrial production recovery in Germany was unlikely to arrive before the latter half of next year, Burandt added.
• Central western Europe looks set for a 16% increase in renewable energy on the year with an additional 80 TWh in Q1 driven by investments including 12GW of new solar capacity in Germany.
• The hydro balance is set to be around 12 TWh above normal with levels at Nordic reservoirs better than last year, averaging 76% capacity. French nuclear availability was also on track to generate 10 TWh more power year on year.