For the Quarter Ending September 2025
North America
• In USA, the Electricity Cost Price Index rose by 2.15% quarter-over-quarter, reflecting renewable generation gains.
• The average Electricity Cost price for the quarter was approximately USD 88.60/MT supporting affordability broadly.
• Electricity Cost Spot Price remained stable due to increased solar capacity, enhanced battery storage flexibility.
• Electricity Cost Price Forecast indicates upward pressure from fuel cost volatility, tempered by renewable additions.
• Electricity Cost Production Cost Trend trended marginally higher as intermittent fuel costs increased balancing expenses.
• Electricity Cost Demand Outlook steady; industrial growth is offset by efficiency and growing demand response measures.
• Electricity Cost Price Index was muted as storage reduced peak price spikes and smoothed volatility.
• Inventory levels and grid reserves increased, reducing export-driven price spikes; major plants maintained reliable operations.
Why did the price of Electricity Cost change in September 2025 in North America?
• Higher renewable generation and battery additions improved supply flexibility, relieving short-term electricity cost pressures materially.
• Fuel price fluctuations increased balancing requirements but were offset by low-cost renewable contributions and storage.
• Stable industrial demand and expanded renewable capacity supported affordability, keeping Electricity Cost Price Index contained.
Asia
• Price Index for electricity cost in China was stable to slightly lower across most regions in Q3 2025, reflecting falling commodity input costs and the effects of market-based reforms in renewables.
• Production cost trend eased in Q3 as fuel (coal/gas) input costs dipped and renewables reduced reliance on thermal generation; however, some provinces still show higher production costs due to transmission bottlenecks and batch/ancillary processes in heavy-industry centres.
• Demand outlook is moderate growth — robust data-centre and electrification demand (AI, cloud services) offset some weakness in traditional manufacturing; overall Electricity CostDemand Outlook projects continued growth but with uneven provincial patterns.
Why did the price of Electricity cost change in September 2025 in China?
• September saw slight decreases because commodity input prices (coal/gas) eased, lowering marginal generation costs, and increased renewable dispatch from solar and wind (and ongoing market reforms) pushed more low-cost generation into the grid, exerting downward pressure on the Price Index.
Europe
• In Spain, the Electricity cost Price Index rose by 142.273% quarter-over-quarter, driven by seasonal accounting adjustments.
• The average Electricity cost price for the quarter was approximately USD 78.80/MT, reflecting electricity cost average Q3.
• Electricity cost Spot Price softened as renewables increased output; wholesale gas price declines reduced generation costs.
• Electricity cost Price Forecast remains tempered by summer renewable dominance, demand recovery, and gas supply dampening spikes.
• Electricity cost Production Cost Trend benefited from lower TTF gas benchmarks and generation expenses in Spain.
• Electricity cost Demand Outlook weak for the quarter with consumption down, limiting price pressure amid supply constraints.
• Electricity cost Price Index volatility reflected large quarter base effects and renewable generation share displacing thermal units.
• Grid operational constraints and seasonal maintenance affected deliveries while exports and storage dynamics influenced spreads.
Why did the price of Electricity cost change in September 2025 in Europe?
• Renewable generation dominance reduced marginal costs, exerting downward pressure on electricity wholesale Price Index levels.
• Lower TTF gas benchmarks cut thermal generation expenses, contributing materially to observed production cost declines.
• Soft demand across Europe and modest Spanish consumption reductions constrained spot price recovery and volatility.
