The coal phase-out was decided in July 2020, as was the Building Energy Act. The EU Commission has published a hydrogen strategy and the half-year statistics for the electricity sector show strong renewables of over 50 percent. On the price side things continued upwards in July.
There has been little change in the tenders for renewable energies: PV was oversubscribed whereas wind was undersubscribed. However, June 2020 brought news on the legal and political front. Prices at the long end are pointing upwards again more strongly in June 2020.
Even if European countries have retracted Corona measures, the pandemic still has a major impact on energy policies and markets. PV beats wind in joint tenders and policy makers have agreed on changes for PV and wind. At the long end prices, stabilised or even went up again in May 2020.
Coal-fired power generation is sinking, wind is disappointing in tenders for renewable energies and PV is booming, and the National Hydrogen Strategy is making progress – these were the big issues in February.
In order to limit price peaks in the balancing energy price, the Federal Network Agency introduced the mixed-price system in the balancing market. However, this procedure was not free of problems either.
In the second part of our series on the “The German electricity balancing market in transition” we discuss what problems arose during implementation and how the market behaved.
After long discussions, the federal and federal state governments agreed on changes to the climate package before the end of the year. The Federal Network Agency also announced a number of tender results for renewable energies. In addition, the third smart meter gateway was certified, so their rollout can begin soon. However, a real end-of-year rally on the price side of things can only be noted for oil.
With the draft of the Coal Exit Law, the Federal Government has not only put the tender procedure for the shutdown of coal capacities on paper. At the same time, changes were announced for renewable energies. According to the International Energy Agency’s World Energy Outlook 2019, global CO2 emissions might rise until 2040. In terms of prices, November continues where October left off: going down.