Italian power demand up in August

OREANDA-NEWS. Italian electricity consumption rose by 4.8pc year on year in August, which, combined with weaker hydropower output, raised thermal generation and boosted spot prices.

Power demand of 24.9TWh last month was up from 23.8TWh a year earlier but below the three-year August average of 25.3TWh, grid operator Terna said.

Adjusted for the effect of temperatures and the number of working days in the month, demand increased by 2.1pc, Terna said. The average monthly temperature in August was nearly 2°C higher than in August 2014 and there was an additional working day in the month this year. Adjusted demand has been 1.7pc higher in the first eight months of 2015, Terna said.

Thermal generation increased to 14.7TWh from 12.2TWh, but remained below the three-year average of 14.8TWh.

Power sector gas burn [rose] (https://direct.argusmedia.com/newsandanalysis/article/1097941) to 54.3mn m?/d from a three-year average of 52.2mn m?/d and 40mn m?/d in August 2014. The day-ahead spark spread, based on the national Pun day-ahead price for a plant with a 55pc efficiency, increased to €10.22/MWh (\\$11.39/MWh) from €9.74/MWh a year earlier.

Hydro generation was 34pc lower year on year at 3.8TWh last month, continuing a trend of much lower hydro output because of lower rainfall. Rainfall in Milan dipped to 2.3mm/d from 2.9mm/d. Hydro output has been 24.1pc lower in the first eight months of this year at 23.7TWh.

Solar generation increased to 2.8TWh from 2.6TWh, but was offset by lower wind production of 750GWh, down from 984GWh a year ago.

The Pun averaged €52.72/MWh in August, an increase of €5.55/MWh on the year. The Pun has been higher year on year in every month since February 2015.