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.
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.
The results of the second tender for wind-onshore were less highly anticipated than in the first tender in May 2017. After the significant dominance of citizen energy companies and the surprising low price level of 5.78 cent/kWh (highest approved bid), a similar result was expected for the second tender. The market participants were not “disappointed”.
The Federal Ministry for Economic Affairs and Energy is expecting more competition and increased security of supply by modifications in the gas market and the balancing power market. The power generation of renewables recorded a new high in the first half-year of 2017. While climate targets are under consideration, investments in and applications for Blockchain technology are taking shape. The strong prices for coal have especially pushed up the annual base load delivery for 2018.
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.
The first two weeks of June 2017 have produced a number of interesting outcomes and discussions, for instance a significant reduction of the average price in the PV tender or the back and forth in drawing up the tenant electricity law. On the futures market little change could be observed, while the spot market has been dominated by the influence of solar and wind.
The power price scenario EU Outlook 2050, released by Energy Brainpool, provides a forecast of the development of the European average power prices. In there, the analysts show tendencies in supply and demand, give an outlook on sales values, sales volumes and sales revenues of fluctuating renewable energies.
The Energy Brainpool GmbH & Co. KG, the independent energy market expert from Berlin, releases the outlook on the development of the energy prices twice a year – the EU Energy Outlook 2050. The power price scenario covers all 28 countries of the European Union plus Norway and Switzerland.