The ideas for a new edition of the Grand Coalition fall behind those of the Jamaica negotiations. Changes to the Renewable Energies Act and larger tender volumes will be unavoidable. Long-term Power Purchase Agreements (PPAs) could develop to be the main compensation form next to the EEG. After the earthquake in the Netherlands, the gas sector must adjust to further cuts in L-gas imports. The electricity prices at the long end go down according to political announcements to postpone a coal exit and due to lower coal prices.
The third round of tendering for wind energy, with surcharges of less than 4 cents/ kWh wasn’t a major surprise. Still, it caused the intervention of the Federal Network Agency for the tenders in 2018. The applications of Blockchain in the energy sector are becoming more diverse, while the prices at the long end of the curve have calmed down again. Read all about the developments in the energy market in November 2017.
The PV-tender for October 2017 resulted in a drop of the average price level below 5 cent/kWh. Simultaneously, the cost allocation under the German Renewable Energy Act (EEG levy) decreases for 2018. The discussion concerning sector coupling continues to gain momentum, although the prospective German “Jamaica” government did not yet set clear lines regarding the energy policy. The spot market prices reached record-breaking levels both on the positive and negative scale in October 2017.
September 2017 has brought a real price rally in the futures market. In addition, it became clear that biomass at least for the tender system is a technology on the phase-out. Applications of blockchain appear more frequently, as TenneT, IBM and Sonnen demonstrate. While the renewable energy targets for 2020 seem to be more …
August 2017 was characterised by the second tender for wind-onshore, the subsequent discussions about citizen energy companies and the significantly decreased price level. Despite the summer break, electricity prices have been increasing at the long end of the curve.
Natural gas can either be transported grid-bound via pipelines or liquefied as LNG. In order to increase the energy density, the gas is transported through the pipelines under high pressure (around 80 bar).
In the procurement of gas some singularities have developed, which distinguish the gas market from other commodity markets. Import companies, for example, sometimes have very long-term contracts with gas producers (up to 20 years), a linkage to the oil price and the so called take-or-pay volumes or flexibilities with limits. This chapter aims to familiarize you with the terminology, to understand their meaning and to assess the consequences for the energy industry.