The cost of electricity in Germany this winter has reached a historic maximum over the past twenty years, Bloomberg reports. The reason was the rapid increase in fuel prices on the largest electricity market in Europe.
Electricity futures in Germany for the fourth quarter of 2021 traded more than 100 euros per megawatt-hour. It is twice as expensive than last year, and by 50 percent more than the highest average day price since 2020. A similar increase in prices is observed throughout Europe. In Spain, the cost of electricity has grown to a record 122.76 euros per megawatt-hour.
Since gas prices in Europe in 2021 increased more than halved, and carbon emission costs and carbon emission quotas increased, the cost of electricity from stations operating on fossil fuel will increase dramatically. High energy prices in Germany were the main engine of consumer inflation, which in July reached a record level since 1993.
Electricity prices for the next year remain unstable, since gas futures continue to grow due to concerns that shipments will be reduced during the winter period. The decision of the German court on the Russian gas pipeline “Northern Stream-2” strengthened fluctuations in the market. The construction operator lost in court the case of exemption from the norms of the updated Gas Directive of the European Union, according to the rules of which Gazprom will be able to fill up no more than 50 percent of the volume of the gas pipeline.
Rising prices for gas is associated with a reduction in deliveries from Russia. Asia buses most of the liquefied natural gas, which is why it is difficult to replenish the repository. Following the gas record prices and replacement – energy coal.