Power Demand Slows in Europe as Virus Lockdowns Kick In

(Bloomberg) -- Electricity demand is starting to drop across Europe as factories and businesses send staff home to avoid the coronavirus.

Grid operators and utilities say demand is dropping both because of social distancing measures forcing offices to shut and from the closure of industrial sites that are some of the biggest energy users.

Automakers from Volkswagen AG to Renault SA are idling plants across the continent. ArcelorMittal, the biggest steel producer outside China, is cutting production at its key plants in the region. Network companies say they can balance the grid and ensure supplies will continue through the crisis.

“Unusually low levels of demand for electricity are typically less problematic than unusually high levels, but can emphasise the impact of renewable peaks,” said Rob Lalor, senior analyst at Enappsys Ltd.

Following is a list of some of the impacts that grid and energy companies in the region are reporting:

Italy

In Italy, which was first in Europe to lock down economic activity in response to the virus, consumption is dropping rapidly. Peak power use was 16% lower on Wednesday than two weeks ago, according to data from grid operator Terna SpA.

Spain

Spain, in a state of emergency and economic lockdown, is slowing too. Electricity use was 10% lower on Wednesday compared with a week ago, according to grid operator Red Electrica Corp. SA.

Germany

Despite fears of a slowdown in Germany, peak power demand hasn’t fallen yet, according to grid data. Industrial demand is 40% of German power output, and the impact hasn’t been felt yet of decisions to cut production at plants run by Daimler AG, Bayerische Motoren Werke AG, Volkswagen AG and Audi AG.

U.K. & France

In the U.K. and France, grid companies are also warning of lower consumption.

“Demand across the country is expected to reduce; largely owing to a decrease in energy use from industrial consumers, which is likely to be greater than the increase in domestic demand as people stay at home,” the U.K.’s National Grid Plc said in a statement.

In France, where the virus is tightening its grip, health officials are predicting that restrictive measures may need to be in place for a month. The nation entered a lockdown on Monday where residents could be fined for leaving their homes for reasons not deemed essential. French peak power demand is 15% lower than a week earlier, grid data show.

©2020 Bloomberg L.P.