Businesslive: Power returns to Germany and Italy

In France and Spain, power use was steady in the past week, while Britain suffered a further slump. Those findings from grid operators shed light on how lockdowns to contain the Covid-19 crisis are affecting Europe’s economy.

London — Italy and Germany showed signs that they’re beginning to consume more electricity, suggesting economic activity may be starting to increase in some corners of Europe hardest hit by the coronavirus.

“Countries will most likely return to previous habits around energy use as policymakers strive to return economies to normality following the severe health and economic shock,” according to DBRS Ratings.

European power and natural gas prices could take years to recover, according to Aurora Energy Research. The consultant estimates it could take four years for power prices and as long as eight years for natural gas to recover in a scenario in which lockdowns last into the fourth quarter.

Full-year demand that’s as much as 20% lower and depressed prices will dent profits for generators across Europe and cause higher-cost coal and lignite stations to stay closed, according to Elchin Mammadov, an analyst at Bloomberg Industries.

While the demand picture looks more promising than a week ago, a comparison to last year shows the extent of the damage Covid-19 has had on industry.

Germany

Germany has begun to lift its coronavirus containment measures, allowing smaller shops and schools to open.

Electricity use measured at midday rose for a third week on Wednesday, rising 2.6% from a week earlier, according to data from energy regulator Bundesnetzagentur. Demand has gained 5.7% from two weeks ago, the data shows.

Italy

Italy will present a plan this week to ease its lockdown starting May 4, joining Germany, France and Austria in pursuing a gradual return to normality as coronavirus infection rates fall.

Spain

Spain’s steep decline in electricity demand shows signs of hitting bottom. There’s been little change in the afternoon peak during the last three weeks compared to the week before, the grid operator Red Eléctrica Corporacion said on Wednesday.

France

In France, the electricity consumption slump looks to have stabilised with use little changed on Wednesday from a week earlier. Demand has slumped 22% from a year earlier, Entsoe data shows.

Full article: https://www.businesslive.co.za/bd/world/europe/2020-04-23-power-returns-to-germany-and-italy-as-business-slowly-starts/

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