The futures market price for electricity is the current average estimate by traders of the electricity prices of the future. Many factors, which are difficult to estimate in advance, have to be considered by traders: How is the supply of electricity, i.e. the available feed-in capacity of European power plants and their costs such as gas, coal and CO2 prices, developing? How is demand developing in terms of both its level and its structure? Another factor is also becoming increasingly important: the weather.
Most of the regulations of the German Climate Package 2030 gradually went into the parliamentary implementation phase during October 2019. For 2020, the renewable energy levy will rise by about 5 percent. The Federal Network Agency announced the results of the October 2019 tenders for onshore wind and PV. Prices struggle to find a direction amidst uncertain political and economic developments.
In recent years, the regulatory map of the energy industry has become increasingly complex. Especially for coal-fired power plants, some inconsistencies and contradictions have crept in during the course of parallel legal processes. Here is an attempt to shed some light on the situation.
Climate conferences or the COPs are the most important international forum for negotiations on climate change and greenhouse gas emission reductions. How did the climate negotiations fare since the famous Paris Agreement in 2015? What has been agreed on during the last COPs and what is in store for the coming climate conferences? This article sheds some light on those issues as well as on the emission reality on the ground.
The wind power summit at the beginning of September 2019 ended without concrete measures. However, the Federal Government’s eagerly awaited climate package disappoints with its timidity in terms of climate and energy policy. Furthermore, the takeover plans of Innogy by energy company E.ON are on track. France’s nuclear power plants and oil caused commodity prices to rise and fall.
The issue of an additional CO2-pricing scheme and the measures for the energy sector are discussed in the second part of the analysis of the German Climate Protection Programme 2030. From 2021, a CO2-price of 10 EUR/ton will apply to the German transport and buildings sectors. The price will rise to 35 EUR/ton until 2025. New regulations also apply to the expansion of renewable energies.
On Friday, 20 September, the Climate Cabinet agreed on the guidelines for German climate policy for the coming decade. The core topic was additional CO2-pricing in the mobility and heating sectors. In the following three blogposts we analyse the climate protection programme 2030. This first bogpost deals with the reduction targets, the structure and the general measures of the climate package. In two following blogposts we will examine the programme in detail.
The fact that the expansion of wind power in Germany struggles is shown by the results of the tender of August 2019. Meanwhile, e-mobility is making inroads in Germany. A law for supporting the structural change for the coal region is formulated and only needs to be passed. Besides that prices on the futures market in August 2019 were pointing downwards.