Analysis Energy
Electricity prices remain higher this late summer
The electricity price was slightly higher this week. Production from renewable sources was slightly lower. In addition, TenneT and the American RWE announce a collaboration for a new offshore wind farm.
The electricity price fell almost constantly last week. On Tuesday, September 12, electricity was at its highest point of the week, at €127,89 megawatt hours. Remarkably, the EPEX was not at its lowest point of the week on Sunday but on Monday, at a level of €87,60.
The electricity price was slightly higher this week than last week. The higher price appears to be mainly due to lower yields from renewable sources. More than 25% of the electricity was generated by solar collectors. Last week it was still 32,7%. The yields were mainly lower because the amount of sun per day could vary considerably. This had the side effect that the hourly rates sometimes fluctuated considerably. On average, the price was between €70 and €180, but sometimes there were much higher outliers. For example, on Monday September 11, a price of €460 per megawatt hour was paid for two hours.
Wind energy revenues increased compared to previous years, but still remained low with a share of 7,1%. In total, 41,7% of all electricity was generated by gas. To reduce costs, coal-fired power stations were added. This saved a 7,8% share of gas. The relatively low generation from renewable sources mirrors the situation of last week. Due to slightly lower production from renewable sources, the electricity price was high at the beginning of the week. The fact that it cooled down a bit seemed to have given the electricity price a push down. However, during the week the electricity price fell again due to lower demand for air conditioning.
Orangewind
In addition, TenneT and the American builder of wind turbines and solar panels RWE have signed an agreement on the construction of a large new offshore wind farm. In 2027, the wind farm called Oranjewind must supply 800 MW to the Dutch energy grid.
The project has a number of innovative elements. Zou uses RWE batteries to store too much generated energy. This way the park can supply a more constant amount of energy and the risk of grid congestion is much smaller. In addition, a radar system has been included in the park that can predict at an early stage when power will need to be switched off. To increase stability, floating solar panels have also been included. When the wind is not blowing, the sun is more likely to shine, and when the sun is not shining, the wind is often blowing.
Matthew Bremer
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