The rise in electricity prices has not yet stopped. Expensive fossil fuels in combination with a moderate yield of sustainable electricity are the cause. High prices and large fluctuations pose perhaps the greatest challenge in recent history for energy companies. Nuclear power stations can form an important addition to the energy mix in the future. View the latest EPEX Spot listing here.
A lack of wind has further pushed up electricity prices in the past week. On Friday, June 24, the quotation on the EPEX Spot rose to €284,50 per MWh. After a small dip in the weekend, the price is further on the rise this week. Today (Tuesday June 28) the Epex stands at €303,71 per MWh. That is the highest price since early March.
The energy crisis has brought proposals to the table that, until a few months ago, met with a lot of resistance. Last week, the Dutch cabinet decided, following Germany's lead, to fully utilize coal-fired power stations again. This measure is intended to save gas, but of course it also has an effect on electricity. On Saturday, June 25, Rob Jetten, Minister for Climate and Energy, announced that he would present plans this week for the construction of two new nuclear power stations. According to the minister, the Netherlands is fully committed to wind, sun and other sustainable energy sources. The energy mix also requires a stable and CO2-free energy source. According to Jetten, the nuclear power plants would be a good addition to sustainable technologies.
Less trade
Due to high electricity prices, the uncertainty caused by the war in Ukraine and the highly volatile market, less electricity is traded on the European wholesale market. At least that is what market agency Prospex says at the Reuters news agency. Electricity trading is one of the core tasks within the commercial activities of utilities. Due to the large price movements, companies have had to adjust their positions. As soon as that happens, various players on the market try to further limit their risks by staying away from the market as much as possible. The European electricity/energy sector has suffered several blows in recent years. From the collapse of energy giant Enron, the financial and debt crisis, the rise of sustainable energy sources, a flood of legislation and regulations to the corona crisis. According to Prospex, the current energy crisis may prove to be the greatest challenge of all.