The electricity market can be summarized by significant fluctuations in an upward trend line. The weather has an important role. This is due to the supply of relatively cheap power from wind turbines. If the wind drops, then expensive power from power stations must be chosen.
The quotation for electricity on the EPEX Spot quotation was close to - but not below - €180 per MWh last week. Due to the loss of wind, the price peaked on Thursday, December 9, at €275,42 per MWh. That is the highest rating in two months. On Sunday December 12, the price dropped (as usual during the weekend) to €190,95 per MWh.
According to experts, the fact that prices are currently at a high level is largely due to expensive emission allowances. On November 1, the EU ETS rate was €56,94 per tonne of CO2. On Wednesday, December 8, that was €88,88 per tonne, more than 33% more expensive. And now that solar panels yield little and the supply of wind energy is disappointing, emission allowances are putting a relatively heavy burden on the price. The big price jump in the EU ETS attracts speculators in the volatile market. Price movements - both upward and downward - are often further amplified by this interference.
High electricity prices sound tempting
The Dutch wind farm 'Hollandse Kust Zuid I and II' will be the first offshore park in the world to be realized without subsidy. There is the SDE++ subsidy for onshore wind and solar panels, but it is expected that this will be phased out and disappear completely in 2025. Due to the high electricity prices - well above €100 per MWh - it seems interesting to invest in sustainable solar panels or wind turbines, even without a subsidy.
But Aurora Energy Research warns that investing in green energy is not without risk. The causes underlying current energy prices are not all long-term. In addition, the government has the ambition to emit 2030% less CO70 by 2. Depending on what measures the government takes, the interventions can disrupt the market and even cannibalize commercial sustainable energy projects.