The supply of LNG, mainly from the United States, indirectly provides more peace of mind in the electricity market. This does not mean that electricity is becoming cheaper, just that the extreme peaks have leveled off.
The price for electricity has remained fairly constant last week. On Tuesday, January 11, EPEX Spot was quoted at €240,89 per MWh. On Friday January 14, the quotation reached the lowest point of the week, at €186 per MWh. This is now higher again. The quotation closed on Monday January 17 at €204,29 per MWh.
The relatively limited price fluctuations can largely be traced back to fossil energy carriers. As has happened before this winter, gas and coal-fired power stations set a relatively high price, but the supply of wind is causing a downward trend. Now that the price of gas has fallen due to the supply of LNG and coal and emission allowances have fallen in price, the basic price of a power station has fallen. This is clearly visible in the EPEX Spot quotation. No major shifts are expected for next week.
European cooperation
Network operator TenneT warns that the reduction in the number of gas and coal-fired power stations for the medium term (from 2025 to 2030) will result in greater mutual dependence on the Northern European countries. According to this grid operator, there is sufficient domestic production capacity available until 2025 to meet demand. After that, security of supply decreases. The interdependence between countries is thus increased. The energy supply and security of supply is therefore no longer a national matter and national decisions have international consequences.
"The climate goals towards the year 2030 are being tightened in the coalition agreements. The use of coal for the production of electricity in the Netherlands will no longer be possible as of 2030," says Maarten Abbenhuis, COO at TenneT. Decentralized generation is increasing rapidly. On the demand side, we see an increase as a result of electrification of mobility and sustainability of the industry. It is becoming more important to allow the demand for electricity to flexibly respond to the weather-dependent supply. The balance between supply and demand is becoming more dynamic and requires new concepts, such as storage. These developments create increasing risks when it comes to security of supply. Stimulating electrification must therefore go hand-in-hand with measures to promote flexibility and storage on both the demand and supply sides.