ENTSOG Gas Regional Investment Plan South 2017 - Main Report

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.

€/MWh Marginal Price

130

120

110

100

90

80

70

60

50

40

30

20

10

0

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

Portugal

France

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)

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.

Gas Regional Investment Plan of the South Region 2017 | 59