The electricity price took a step backwards this week. Relatively favorable weather has resulted in a lower electricity price on all fronts. For example, an above-average amount of renewable energy was generated. In addition, warm weather resulted in lower fossil fuel prices.
The electricity price has been lower in the last seven days than the week before. On Tuesday, February 14, the price of the Epex was at the highest point of the week, at €152,14. The electricity price then fell to €97,33 on Monday, November 20. On Tuesday, February 21, the electricity price had risen again to €137,84.
The electricity price fell this week as supply remained relatively stable. Stable weather conditions ensured that approximately the same amount of renewable energy was produced throughout the week. This meant a quiet and predictable week for grid operator Tennett. Shortages on the Dutch electricity grid did not occur all week, so Tennett did not call for emergency power all week. As a result, additional costs associated with using flexible capacity were not incurred.
In addition, the production of renewable energy was relatively large last week. In total, approximately 17% of all electricity was generated by wind turbines. The percentage of solar power in particular was high for the time of year. Solar panels supplied 7,7% of Dutch electricity.
Raw material prices also put significant pressure on electricity prices
The high temperatures also helped reduce the electricity price somewhat further. For example, power demand is falling in many countries where electric heating is used, causing electricity prices to fall throughout Europe. In addition, European gas demand also fell this week. For the first time since autumn, substantial gas savings are being made. Last week, gas consumption was about 30% lower than the multi-year average. The gas price has currently fallen significantly to €48,40, the lowest level since August 26.
In addition to the gas price, the coal price also continues to fall, causing the utilization rate of Dutch coal-fired power stations to rise to 77%. For a long time, it was not profitable to generate coal power due to the high price of coal. Due to the high price of gas, additional coal was used to generate electricity in many countries. As coal producers were unable to quickly meet the extra demand, leading Newcaste Coal Futures saw their price rise to a record high of $439 this summer. However, due to the warm winter weather, the global demand for coal for heating is currently low and the price is falling sharply. A month ago, the price of coal had already fallen to €350,95, but the price has fallen sharply since the end of February. The price is currently $205,65 per tonne.