A new law for the energy sector has been agreed on with some delay. It has important changes in store for the coming period. The Coal Commission also has new findings. At the long end, the prices, driven by global economic uncertainties, mainly went down. But they caught up again in the end of November 2018.
The currently rising wholesale price for electricity is particularly pronounced in Poland. As before (e.g. August 2015), the old Polish power plant park is not in a position to cover the entire demand for electricity in times of shortages. Where the demand is high, there follows the price.
Since the beginning of August 2017 the prices on the electricity and commodity markets have been breaking one record after the other. Is it eventually time to pop the corks and finally ring in the end of the lean times? Or is it barely a temporary anomaly? To find an answer, we investigate the causes of the current price development.
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.
On behalf of Greenpeace e.V., Energy Brainpool, outlined a coal phase-out in Germany with focus on achieving the climate goals and yet ensuring supply security. In order to reduce the transition costs it is necessary to drastically increase the implementation of cost-effective technologies on the market such as PV and wind. On the contrary, security of market supply needs to be ensured by building new gas power plants and installing cross-border capacities as well as flexibility options.
Eurelectric, the European association of the electricity sector, has decided by a large majority that its members will not build new coal-fired power plants from 2020 onwards. However climate protection goals can only be achieved by decommissioning coal-fired power plants.
Within a short amount of time the Green party, the German Federal Environmental Protection Agency and the WWF have expressed the opinion that the phase out of coal energy should begin soon. Different groups and players have said and proven with scientific papers that without an ambitious plan to get rid of coal as a source of energy Germany’s climate goals cannot be fulfilled.