Temperature in Europe December 6 dropped significantly lower than the average values and daytime electricity prices in a number of European countries exceeded the mark of 200 euros (225.7 dollars) for the megawatt-hour, Bloomberg writes. With the onset of cold weather, increased demand demanded expansion of production on fossil fuel power plants, so the cost of electricity has increased dramatically.
Carbon prices in Europe are now close to a record, and the cost of gas and coal has become higher due to low levels of stocks in storages, so the production of electricity based on fossil fuels remains very expensive. In the north of Sweden, the temperature fell below -40 degrees Celsius, so electricity prices in the northern regions rose to a record level in 226.54 euros (255.73 dollars) for megawatt-hour, according to the NORD POOL Energy Exchange. To maintain balance in the power system in the country, also launched a reserve plant operating on oil.
In Poland, prices rose to 240.59 euros ($ 271.59) for megawatt-hour, in Germany increased – up to 265.39 euros ($ 299.59), and in France – up to 282.50 euros (318 , 90 dollars). It leaves the electricity market vulnerable to very high prices during cold periods and windless weather.
It is expected that the European prices for electricity in December will remain very high. Weather in the coming weeks, the performance of the French nuclear power industry, the daily supply of gas from Russia and the Chinese policy regarding coal – depends on all these factors whether prices will grow even more “,” said the head of the fundamental analysis and modeling of a renewable energy company AXPO SOLUTIONS AG Andy Sommer.
Gazprom’s Russian energy company with reference to the GAS Infrastructure Europe (GIE) Association data reported that Europe has already spent about a quarter of gas uploaded this year – 23.4 percent of fuel selected from underground storage facilities. The EU has printed its underground gas storage on October 13, when they were filled with only 78 percent, which became the worst indicator over the past five years.