The electricity market is calming down somewhat. Although the price remains at a high level, the fluctuations have been somewhat less extreme in recent days. The problems with the gas supply from Russia also remain an important factor in the electricity market. Partly as a result of this, European green ambitions are coming under considerable pressure.
The record peak at the end of August with electricity prices exceeding €600 per MWh on the TTF is now behind us. On Wednesday 7 September, the quotation on the TTF rose to €443,93 per MWh. The dip in the market in recent days was not in the weekend but on Friday 9 September with €345,08 per MWh. A relatively limited supply of electricity generated by solar and wind caused the electricity price to deviate from the usual pattern in which prices are lower on Sundays due to lower demand.
The European Commission is considering measures to curb high energy prices. The Commission is expected to present a package this week. However, Member States are divided on the details of how to intervene in the market. Opinions are also divided about the introduction of a maximum gas price. Norway - which is the main gas supplier to the EU with the disappearance of Russia - calls a maximum price to combat symptoms. It does not solve the underlying problem, a shortage of energy. A critical note that can be placed here is that Norway earns gold from the export of energy to the EU.
Coal
Meanwhile, the EU's green ambitions are coming under increasing pressure from the energy crisis. According to data from market agency Kpler, the EU imported 2022% more coal in the period from January to August 35 compared to the same period a year earlier. In August, the EU imported 57,3 million tons of coal, mainly used for electricity generation. That is 9,5% of global coal imports. The EU has not imported that much coal in August since 2018. In recent years, a policy has been drawn up aimed at investing in sustainable energy and coal and nuclear power plants have been phased out at an accelerated pace. The war in Ukraine has put that policy in jeopardy. Politicians seem to be weakening green ambitions in favor of economic stability. According to some analysts, this is a major dent in the ego of the green lobby, which took the EU as an international example of how the energy transition can be carried out.