The electricity price was slightly higher in the past seven days than last week. Due to the windless weather, the production of wind energy decreased. Meanwhile, the House of Representatives voted in favor of the proposal from the Ministry of Economic Affairs and Climate Policy to phase out the net metering scheme. Although a motion from the VVD ensured that the sharpest edges of the proposal were taken off.
The electricity price rose slightly last week compared to the week before. On Tuesday, February 7, the price of the EPEX was at its highest point of the week, at €170,53 per megawatt hour. Until Friday, February 10, the price dropped to €133,13. Since Saturday, the electricity price has been on the rise again. On Tuesday, February 14, the EPEX was trading at €158,16.
The main reason for the higher electricity price is the lower wind power. In Northern Europe, the wind force was a lot lower last week than in the rest of January. As a result, only 11,7% of electricity in the Netherlands was generated by wind turbines. On the other hand, solar panels supplied a relatively large amount of electricity. The share of solar power was 9,5% last week.
As a result of the lower production of these cheap green energy sources, gas consumption increased. The percentage of Dutch electricity generated by gas increased from 39,9% to 48,3%. In addition, the Netherlands was supplied with 13,2% of coal power. Last week this percentage was still 10,7%.
The fact that the electricity price increased only slightly is due to developments in the raw materials market. Fossil fuel prices took a step back last week. Seven days ago, the price of gas on the TTF was still €55,50 per megawatt hour. At the time of writing (Tuesday, February 14), that price has fallen to €51,71. The price of Newcastle Coal Futures fell from $255,65 per tonne to $221 over the same period, the lowest price since January 13, 2022.
The House of Representatives agrees to the phasing out of the netting scheme
In addition, on Tuesday, February 7, the House of Representatives approved the phasing out of the netting scheme. At the moment, the extra yields from solar panels are offset against previously consumed electricity. The Ministry of Economic Affairs and Climate wants to simplify this scheme from 2025. According to the ministry, the scheme is unnecessary because investments in solar panels are recouped after seven years, even without offsetting.
The government proposed that from 2025, solar panel owners will be allowed to deduct 64% of the extra electricity generated from their consumption. After that, the percentage that solar panel owners are allowed to offset will be reduced by 9% every year according to the original bill. The scheme would be completely abolished in 2031.
This reduction proved to be too rigorous for the House. An amendment was adopted with 145 votes in favor that changes the method of phasing out in favor of solar panel owners. For example, the law stipulates that solar panel owners will be allowed to offset 2025% of the extra generated electricity against their consumption between 2027 and 80. The minister then determines a so-called 'reasonable compensation' for two years.