The electricity market remains restless, but the very large price jumps from day to day as earlier this month are somewhat behind us. The electricity grid is starting to fill up and that is hindering the development of new solar parks in particular. The ministry has taken additional measures for this in the SDE++ subsidy this year.
The electricity market, just like the gas and oil markets, has also calmed down somewhat. Last Tuesday, March 15, the EPEX spot recorded €271,11 per MWh. This fell steadily to ultimately €147,88 per MWh on Saturday, March 19, the lowest level of the past seven days. Yesterday the EPEX came to €217,02 per MWh.
The relatively mild and sunny weather that various weather reports predict ensures a smaller demand for energy for heating and a wider supply of energy generated with solar panels during the day. According to analysts, this does not necessarily have to result in a drop in electricity prices. Especially during the morning and evening peaks, there is relatively little cheap green energy available and the coal- and gas-fired power stations have to provide full support and the grid operator has to do everything possible to keep the grid in balance. The result is large differences in hourly prices for electricity.
Adjustment of subsidy scheme
The electricity grid is starting to fill up and this causes problems, especially for the development of new solar panel projects. Storing energy in batteries for a short period of time during peak hours could be a solution. Batteries are not yet eligible for the SDE++. Rob Jetten, Minister for Climate and Energy, stated this letter to parliament about the opening of the SDE++ subsidy on Friday, March 18. The minister bases this on the advice of the PBL, which states that there are some fundamental objections to the calculation of the subsidy amount and its implementation. In addition, according to Jetten, the advice shows that the estimated costs per ton of CO2 avoided with batteries far exceed the upper limit of €300 per ton. In order to be able to realize new solar PV projects on the full electricity grid, Jetten wants to limit the peak power of solar installations. To be eligible for the SDE++ subsidy, projects larger than 1MWp may have a feed-in capacity of a maximum of 50% of the peak power. This requirement does not apply to smaller installations and sun-tracking systems.