Electricity prices are on the rise for the first time since mid-October. Nevertheless, the electricity price remains relatively low. In particular, a relatively favorable gas price and the large production of renewable energy ensure cheap electricity. Whether the price will remain so favorable this winter remains to be seen. Delays in the maintenance of French nuclear power plants could drive up the European electricity price.
The electricity price was higher for almost the entire week than the previous five weeks. On Monday, November 14, electricity cost €173,33 per megawatt hour. There was a small dip in the middle of the week. On Thursday, November 17, the EPEX spot market price found its bottom at €149,58. A sharp price increase followed over the weekend, after which the electricity price reached its highest level on Monday, November 21. The electricity rate at that time was €220,46.
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The price remains relatively low
Although the price of electricity is rising, electricity is still on the cheap side compared to the rest of 2022. Since mid-October, the EPEX price has been continuously between €70 and €180. This is an exceptionally low rate. Rarely has the EPEX price been below €2022 for more than two days in 200. This summer, electricity generally cost more than €300 and sometimes the electricity price was even above €600.
The fact that the electricity price remains on the low side despite the cold weather is mainly due to the low gas price. In the Netherlands, approximately half of all electricity is generated from gas. As a result, prices on the gas market have a strong influence on the electricity price. The fact that the gas price remains low despite lower temperatures is mainly due to the high filling rates of European gas reserves. At the moment, European reserves are about 95% full.
In addition to the low gas price, the continued production of renewable energy also keeps the electricity rate low. An above-average amount of green energy has been produced throughout the autumn. This was the case again this week and the percentage of renewable energy in the Dutch energy mix rose to 36,5%.
French nuclear power stations appear to be a nuisance
It remains to be seen whether the electricity price will remain low this winter. This winter, France's electricity supply is in danger of being significantly disrupted. The renovation of about half of all French nuclear power stations is in danger of being delayed. Currently, 25 of the 56 French nuclear reactors are shut down. Since approximately 70% of all electricity in France is generated by nuclear power plants, this could cause serious problems. And these problems are not limited to France. Due to reduced energy production in France, European energy suppliers cannot purchase cheap emergency power from France. This could cause the price to rise throughout Europe.
Due to corona, regular maintenance at various power stations has been postponed. In addition, cracks have been found in the water pipes of reactors in several nuclear power stations. Moreover, work was halted for weeks due to strikes in October. There are now fears that blackouts will occur on winter evenings. There is a fear that French people who come home from work will turn on their (mainly electric) heaters and TVs at the same time. This could cause a significant peak on the power grid, possibly resulting in part of the country being without power.