The price of electricity has fallen sharply in the Netherlands in the past week. Nevertheless, several experts warn that the volatility in the electricity market is certainly not over yet, partly due to the limited supply of cheap nuclear energy from France. The European Commission has approved Germany's greening program for electricity production despite criticism from several member states who fear unfair competition.
The electricity price has taken a big step back in the past week. From a quotation of €222,73 per MWh on the Epex Spot on Wednesday, December 21, the price fell to €77,84 per MWh on Boxing Day. A relatively limited demand for electricity during the long Christmas weekend and ample supply of electricity generated by wind turbines pushed the price down, according to several experts. The steadily falling gas price also helps to keep the costs of producing electricity under control. The electricity price has now risen slightly, but at €126,25 per MWh it is still relatively low compared to recent weeks.
Despite the downward trend on the Epex, the situation on the European electricity market remains tense. One of the causes of this is the limited supply of electricity from French nuclear power stations. The country that is normally a net exporter of electricity on the European market is now a net importer. Maintenance delays and corrosion problems in some nuclear reactors have caused France's nuclear energy production to plunge to its lowest level in XNUMX years. The problems in France coincide with the Russian invasion of Ukraine, which has turned the European energy market upside down.
Nuclear fuel
The war in Ukraine is causing problems with the supply of fuel for nuclear reactors in the former Eastern Bloc and in former Soviet republics that are now part of the EU. Bulgaria signed an agreement with Westinghouse Electric Sweden on Thursday, December 22, for the supply of nuclear fuel for the Kozloduy power plant. According to the Bulgarian government, this is a first step towards new suppliers outside Russia. An agreement is also being drawn up with the French Framatome for the supply of fuel. About 35% of Bulgaria's electricity is generated in the Kozloduy power plant. The nuclear fuel currently comes from the Russian Rosatom. Rosatom expects export growth of 2022% for 15. Alexei Likhachev, the company's CEO, reported this yesterday to the Russian newspaper Izvestia. The growth comes in part from current contracts, deliveries of fuel and enriched uranium products, Likhachev said. It also includes the construction of 23 nuclear power plants at projects in a dozen countries, he added. Rosatom is not subject to Western sanctions and is therefore still allowed to export.
Competition
In addition to nuclear energy, EU member states are also focusing on renewable energy to green electricity production. The European Commission gave the green light for German plans in that area last Wednesday. Germany has set up a €28 billion program aimed at expanding solar and wind energy production capacity. This means that 2030% of Germany's electricity demand should come from renewable sources by 80. In the subsidy program, a premium is paid above the market price for green energy and small producers receive a guaranteed price for the electricity that is generated. German energy policy has come under a lot of criticism from several EU member states in recent months. In total, the German government has released €200 billion to protect consumers and companies against sharply increased energy prices. Critics argue that this seriously disrupts the internal European market. EU member states with less deep pockets cannot sufficiently compensate their companies, which means that these companies are lagging behind their German competitors. According to the European Commission, there are sufficient safeguards in the German greening plans to minimize unfair competition.