Electricity continues to be expensive. This is largely due to the high price of gas and coal. These traditional fuels currently have an important share in the energy mix and therefore determine the electricity price to a large extent.
The supply of electricity generated from wind turbines largely determines the price. There was less wind on Monday, November 29, and this was reflected in the EPEX Spot quotation. Electricity recorded €256,27 per MWh, the highest price of the week. One day later the quote dropped to €176,13 per MWh.
Calmer weather is predicted for this week. If that is correct, then, according to analysts, this will ensure that electricity prices do not fall. The relatively high prices for gas and coal and expensive emission allowances mean that electricity from traditional power stations is more expensive than electricity from wind turbines or solar panels, among other things. But... then there has to be supply, and that is something experts are concerned about.
Fossil energy will remain important for the time being
The price movements show that the economies are still largely dependent on fossil sources for energy supply. Alternatives are being worked on extensively and there are several arguments for this. Consider environmental or geopolitical reasons, or European energy dependence on Russia and the oil states in the Middle East.
The accelerated phasing out of coal and nuclear power stations (such as the closure of the Onux power station in Rotterdam this week) entails a risk, experts report. On the electricity market there is a balance between production capacity and expected demand. If there is intervention in the market (for example by the government), without the consequences being properly mapped out and there being no good alternatives, this may have consequences for the security of supply. And although a lot is being invested in sustainable energy, gas is still the most reliable (in terms of security of supply) alternative to coal-fired power stations.