The price increase on the electricity market, which started two weeks ago, continues. Lower revenues from renewable sources in particular push up the electricity price. Although the relatively high gas price during this period certainly does not help. In addition, the strikes at Australian LNG terminals are getting closer.
The electricity price is also higher this week. On Tuesday, August 16, electricity traded for €91,85. Afterwards, the price of electricity rose to above €100 for three days. The price fell over the weekend. On Saturday, August 19, the gas price recorded the lowest level of the week. The trading price at that time was €81,01. On Monday, August 21, the price rose to the highest point of the week, at €117,78.
The increase once again shows how much the dependence on renewable energy has increased in the Dutch electricity market. The main cause of the high electricity rate is a relatively low return from renewable sources. A combination of rain and little wind created relatively unfavorable conditions compared to the rest of the summer. In total, 24,8% of solar energy and 16,4% of wind energy were generated. This brings the power generated virtually free to around 41,2%. Earlier this summer, percentages of between 60% and 70% were not unusual.
Australian strike threat continues
As a result of lower renewable yields, no less than 43% of all electricity was generated by gas-fired power stations. Due to the high gas consumption, the gas market is pushing the electricity price up considerably. Signals of mass strikes in Australia's LNG sector are only growing stronger. Talks between Woodside Energy Group and unions have now collapsed. As a result of the failed negotiations, strikes are expected at the beginning of September. Strikes are also coming closer every day at competitor Chevron. Employees of that company are facing a vote on whether they want to go on strike.
Any strikes at both companies will have major consequences for the European gas market. Together the companies are responsible for 10% of global LNG sales. Although Australia mainly sells liquefied gas to the Asian market, European gas prices also rise sharply when the Australian infrastructure comes to a standstill. The fact that Europe remains mainly dependent on the daily market makes the continent vulnerable. To guarantee the continuity of LNG supplies, EU countries must participate in the higher Asian LNG prices. Depending on the news about the strikes, the gas price fluctuates approximately between €35 and €40. This means that the basic level of the gas price appears to remain higher for the time being. At the end of July and the beginning of August, the gas price was between €25 and €32.