The tide has turned in the electricity market; this after a period of rising prices. It is not only the prices that have started to move, because in Brussels the definition of 'renewable (electric) energy' is being adjusted.
For the first time since November 1, the electricity quotation on the EPEX Spot quotation was below €100 per MWh last week. On Friday, December 31, the quotation was €78,63 per MWh. On Sunday, January 2, the price dropped even further, to €58,81 per MWh. That is the lowest rate since early August. The quotation subsequently increased and closed on Monday 3 January at €98,38 per MWh. The hourly market saw the first negative electricity price of this year during the night hours (from 01:00 AM to 05:00 AM).
According to analysts, the reason why prices have fallen so sharply is mainly because there has been more wind in recent days. Furthermore, the demand for electricity was lower in the period around Christmas and the New Year. The current prices are still a lot higher than the electricity price in the same period last year. At that time, the bandwidth for electricity was largely between €40 and €70 per MWh.
The current price movements on the energy market have not gone unnoticed by policymakers in Brussels. On Friday 31 December, the European Commission started consultations with Member States on the rules and framework for sustainable finance. This so-called 'EU taxonomy' determines the direction when an investment is seen as sustainable and when an attempt is made to obtain private funds.
Expansion of the concept of sustainable
This is not remarkable, but the concept of 'sustainable energy supply' is being stretched considerably, writes the European Commission. "Taking into account scientific advice and current technological progress, as well as varying transition challenges in Member States, the European Commission believes that there is a role for natural gas and nuclear energy to facilitate the transition to a predominantly renewable energy future to ease."
By expanding the list for sustainable financing to include gas and nuclear energy, more polluting sources (for example coal) can be phased out more quickly, is the motivation of the European Commission. Member States have until January 12 to submit any additions to the Commission.