The decisive topic for the energy industry in August 2018 was the record temperatures, which together with new record high prices for CO2-certificates of over 20 EUR/ton boosted electricity prices. It seems that higher prices for commodities and electricity will become the new “normal”.
The trilogue negotiations on the Winter Package are making progress. The content of the remaining directives and regulations are to be coordinated by the end of the year. A Chinese battery factory in Thuringia is causing a sensation, while the proportion of new registrations of electric vehicles is increasing. A step forward and a step back in the balancing energy market. High spot prices and sustained bullish mood on the futures market due to heat wave.
Both the Germany Energy-Agency (dena) and the Federal Network Agency (BNetzA) show in publications that an increased expansion of renewables is necessary for an energy transition with sector coupling. News from the gas industry: Less gas from the Netherlands and market area consolidation. Prices at the long end stabilise in June and less wind raises spot levels.
May 18 review: Still no clarity on special tenders and the German coal commission. On the other hand, more news on blockchain projects, slump in the onshore wind tenders, while there is only one direction on the price side: Bullish upwards.
CO2 emissions from the European Emissions Trading Scheme (ETS) increased in 2017. In Germany, on the other hand, they declined. With PPAs, companies are increasingly focusing on renewable energies, while China made almost half of all investments in wind and PV last year. German Minister Altmaier is striving for an urgent reform of the EEG and the KWKG. Power derivatives rise to 4.5-year highs with strong commodity support.
E.ON and RWE divide Innogy among themselves. How will the full integration of the RWE subsidiary into the two largest German energy companies change the energy market? According to a court ruling, the Federal Network Agency must increase the returns on equity investments in energy grids. And what about Blockchain two years after the hype about this new technology? Also in this monthly review: the development of electricity prices is largely dependent on rising CO2-prices.
Both the negotiations on the German coalition agreement and the prices on commodity exchanges were very volatile in February 2018. PPAs are becoming increasingly attractive and the results of the tenders for renewable energies speak for themselves.
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.